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Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Department Finishing Department Cost Driver

Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools:

Fabrication
Department
Finishing
Department
Cost Driver
Maintenance$ 54,00027,000Machine hours
Materials handling81,00040,500Material moves
Machine189,00013,500Machine setups
Inspections

-

67,500

Inspection hours
Total

$ 324,000

$ 148,500

The following activity predictions were also made for the year:

Fabrication
Department
Finishing
Department
Machine hours5,0002,500
Material moves1,500750
Machine setups35025
Inspection hours-500

It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW100 and SG150. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates of activity-based rate. The production manager has provided the following data for the production of a batch of 100 units for each of these models:

SW100SG150
Direct materials cost$ 18,000$ 27,000
Direct labor cost$ 7,200$ 5,400
Machine hours (Fabrication)250350
Machine hours (Finishing)10050
Materials moves2040
Machine setups510
Inspection hours1530

a. Determine the cost of one unit each of SW100 and SG150, assuming a company-wide overhead rate is used based on total machine hours.

Round rate to two decimal places.

Overhead rate based on total machine hours: $Answer per machine hour

Use rounded overhead rate calculated about for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places.

Product Costs per UnitSW100SG150
Direct materialsAnswerAnswer
Direct laborAnswerAnswer
Manufacturing overheadAnswerAnswer
Total cost per batchAnswerAnswer
Number of units per batchAnswerAnswer
Cost per unitAnswerAnswer

b. Determine the cost of one unit of SW100 and SG150, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments.

Round to two decimal places, if applicable.

Overhead rate based on machine hours for Fabrication Dept.: $Answer per machine hour.

Overhead rate based on machine hours for Finishing Dept.: $Answer per machine hour.

Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.

Product Costs per UnitSW100SG150
Direct materialsAnswerAnswer
Direct laborAnswerAnswer
Manufacturing overhead:
Fabrication Dept.AnswerAnswer
Finishing Dept.

Answer

Answer

Total cost per batch

Answer

Answer

Number of units per batchAnswerAnswer
Cost per unit

Answer

Answer

c. Determine the cost of one unit of SW100 and SG150, assuming activity-based overhead rates are used for maintenance, materials handling, machine setup, and inspection activities.

Round rate to two decimal places, if applicable.

Activity-based overhead rates:
MaintenanceAnswer
Materials handlingAnswer
Machine setupAnswer
Inspection activitiesAnswer

Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.

Product Costs per UnitSW100SG150
Direct materialsAnswerAnswer
Direct laborAnswerAnswer
Manufacturing overhead:
Maintenance activityAnswerAnswer
Maintenance handling activityAnswerAnswer
Machine setups activityAnswerAnswer
Inspections activity

Answer

Answer

Total cost per batchAnswerAnswer
Number of units per batchAnswerAnswer
Cost per unit

Answer

Answer

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