The following information is provided for Crank It Up Corp., a manufacturer of stereo systems. Crank It Up Corp. manufactures two different stereo systems: Feel the Beat model and Hurt My Ears model.

Activity	Total Budgeted Cost	Allocation Base
Setup	$51,200	Number of setups
Machine maintenance	$41,700	Number of machine hours
Total	$92,900

Information	Feel the Beat	Hurt My Ears	Total Units
Direct labor hours	1,550	2,500	4,050
Number of setups	250	290	540
Number of machine hours	1,670	1,300	2,970

Crank It Up Corp. plans to produce 550 Feel the Beat systems and for Hurt My Ear systems, 800. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).

1. Compute the ABC indirect manufacturing cost per unit for each product.

Activity	Total estimated overhead cost	/	Total estimated quantity of the overhead allocation base	=	Predetermined Overhead Allocation Rate
Setup		/		=
Machine maintenance		/		=

2. Compute the expected indirect manufacturing cost of each product.

Feel the Beat	Predetermined Overhead Allocation rate	X	Actual Quantity of the Allocation Base Used	=	Allocated Manufacturing Overhead Cost
Setup		X		=
Machine Machine maintenance		X		=
				Total Manufacturing Overhead Costs
				Number of products
				Manufacturing overhead cost per product

Hurt My Ears	Predetermined Overhead Allocation rate	X	Actual Quantity of the Allocation Base Used	=	Allocated Manufacturing Overhead Cost
Setup		X		=
Machine Machine maintenance		X		=
				Total Manufacturing Overhead Costs
				Number of products
				Manufacturing overhead cost per product

3. Compute the indirect manufacturing cost per unit using direct labor hours for the single plantwide predetermined overhead allocation rate.

Total estimated overhead cost	/	Total estimated quantity of the overhead allocation base	=	Predetermined Overhead Allocation Rate
	/		=

Feel the Beat

Predetermined Overhead Allocation rate	X	Actual Quantity of the Allocation Base Used	=	Allocated Manufacturing Overhead Cost
	X		=
			Number of products
			Manufacturing overhead cost per product

Hurt My Ears

Predetermined Overhead Allocation rate	X	Actual Quantity of the Allocation Base Used	=	Allocated Manufacturing Overhead Cost
	X		=
			Number of products
			Manufacturing overhead cost per product