Tableau DA 4-3: Mini-Case, Computing and assigning overhead costs using activity-based costing LO P3 Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign budgeted overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Budgeted Overhead Costs by Budgeted Direct Labor Hours & Department Machine Hours by Department 150,000 hrs 125,000 hrs Finishing 100,000 hrs 75,000 hrs Total: $8,000,000 Assembly Assembly 50.000 hrs Assembly Department Finishing: $3,000,000 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Budgeted Overhead Costs by Activity Supervision Activity Cost Pool Supervision: $2,000,000 Total: $8,000,000 Maintenance Cost Driver & Budgeted Usage by Activity Supervision Maintenance Activity Supervision: 125,000 direct labor hours nance Cost Driver & Budgeted Usage by Activity Supervision Maintenance Keep Only Exclude Activity Maintenance: 100,000 machine hours nance Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours a) Compute the overhead cost per unit of each model using ABC b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. 3. Which overhead cost allocation method would the XL production manager prefer? 5. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 25 Required 3 Compute the overhead cost per unit of each model using ABC. Ees XL Activity Usage RD Activity Rate Allocated cost MH Allocated cost Activity Maintenance Supervision Totals Units produced Overhead cost per unit Activity Usage MH DLH per MH Der DLH DLH Activity Rate per MH per DLH S 0 $ 0 0 O Required 28 Complete this question by entering your answers in the tabs below. Required 2A Required 28 Required 3 Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. Model Plantwide OH Rate OH Cost Per Unit XL RD Activity Usage DLH DLH