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table [ [ , , Annual,Total Direct ] , [ Product , Direct Labor - Hours,Production,Labor - Hours ] , [ X 2 0
tableAnnual,Total DirectProductDirect LaborHours,Production,LaborHoursX DLHs per unit, units, DLHsX DLHs per unit, units, DLHs Additional information about the company follows: a Model requires $ in direct materials per unit, and model requires $ b The direct labor workers are paid $ per hour. c The company has always used direct laborhours as the allocation base for applying manufacturing overhead cost to products. d Model X is more complex to manufacture than model X and requires the use of special equipment. e Because of the special work required in d above, the company is considering the use of activitybased absorption costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified as follows: tabletableActivity Cost PoolMachine setupsSpecial processingGeneral factoryActivity Measure,tableEstimatedTotal CostEstimated Total,ActivityXXTotalNumber of setups,$Machinehours,Direct laborhours,$ Required: Assume that the company continues to use direct laborhours as the allocation base for applying overhead cost to products. a Compute the plantwide predetermined overhead rate. b Compute the unit product cost of each model. Assume that the company decides to use activitybased absorption costing to apply overhead cost to products. a Compute the activity rate for each activity cost pool and determine the amount of overhead cost that would be applied to each model using the activitybased approach. b Compute the unit product cost of each model. Complete this question bv entering vour answers in the tabs below. Prev of Next
tableAnnual,Total DirectProductDirect LaborHours,Production,LaborHoursX DLHs per unit, units, DLHsX DLHs per unit, units, DLHs
Additional information about the company follows:
a Model requires $ in direct materials per unit, and model requires $
b The direct labor workers are paid $ per hour.
c The company has always used direct laborhours as the allocation base for applying manufacturing overhead cost to products.
d Model X is more complex to manufacture than model X and requires the use of special equipment.
e Because of the special work required in d above, the company is considering the use of activitybased absorption costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified as follows:
tabletableActivity Cost PoolMachine setupsSpecial processingGeneral factoryActivity Measure,tableEstimatedTotal CostEstimated Total,ActivityXXTotalNumber of setups,$Machinehours,Direct laborhours,$
Required:
Assume that the company continues to use direct laborhours as the allocation base for applying overhead cost to products.
a Compute the plantwide predetermined overhead rate.
b Compute the unit product cost of each model.
Assume that the company decides to use activitybased absorption costing to apply overhead cost to products.
a Compute the activity rate for each activity cost pool and determine the amount of overhead cost that would be applied to each model using the activitybased approach.
b Compute the unit product cost of each model.
Complete this question bv entering vour answers in the tabs below.
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