Subscriptions O Noah Questo 2 Not complete Marked out of 51.00 Flat question Activity-Based Costing Slack 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 520.000 $10.000 Machine hours Material handling 30,000 15.000 Material moves Machine setup 70,000 5.000 Machine setups Inspections 25.000 Inspection hours $120,000 $55,000 The following activity predictions were also made for the year Fabrication Department Finishing Department Machine hours 10000 5.000 Material moves 3.000 1.50 Machine setups 700 50 Inspection hours 1.000 It is assumed that the cost per unit of activity for a given activity does not vary between departments. Slack's president. Charles Slack, is trying to evaluate the company's product mix strategy regarding two of its five product models, zx300 and SLS00. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates or activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models: 2X300 SL500 Direct materials cost $12,000 $18.000 Direct laborou 55.000 4.000 Machine hours (Fabrication 700 Machine hours Finishing 200 30 Material moves Machines 100 50 9 5 30 Inspection hours 60 mptions a. Determine the cost of one unit each of Zoo and SL500, 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 0 per machine hour Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places SL500 0 0 Product Costs per Unit ZX300 Direct materials $ Os Direct labor Manufacturing overhead: 0 Total cost per batch $ OS Number of units per batch 0 Cost per unit $ 05 0 0 0 0 b. Determine the cost of one unit of ZX300 and SLS00, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments Round rate to two decimal places, if applicable Overhead rate based on machine hours for Fabrication Dept. $ O per machine hour Overhead rate based on machine hours for Finishing Dept. $0 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 neede Product Costs per Unit Product Costs per Unit ZX300 SL500 Direct materials $ OS 0 Direct labor 0 0 Manufacturing overhead: Fabrication Dept 0 Finishing Dept 0 0 Total cost per batch 5 Os Number of units per batch D Cost per unit 0 0 c. Determine the cost of one unit of 2000 and SL500, assuming activity based overhead rates are used for maintenance, materials handling, machine setup, and inspection activities Round rate to two decimal places, if applicable 0 Activity based overhead rates: Maintenance 5 Material handling 5 Machine setup 5 Inspection activities 5 0 0 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 Unit ZX300 SL500 Direct materials $ 0 Direct labor 0 0 Manufacturing overed Maintenance activity 0 0 Material handling activity 0 0 Machine setups activity 0 0 Inspection activity Total cost per batch 0 $ OS Number of units per batch 0 0 Com per unit 5 OS Check Previous Save Answers Next
