This question has 3 parts Thank you 1 A PB Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes Type of Textbook Activity (Cost) Cost Driver Deluxe Moderate Economy Machine maintenance ($300,000) Number of machine hours 250 750 1,000 Setups ($760,000) Number of setups 40 35 5 Packing ($192,000) Number of cartons 20 40 60 Photo development ($448,000) Number of pictures 3,500 1,500 2,000 Deluxe textbooks are made with the finest quality paper, six color printing, and many photographs Moderate texts are made with three colors and a few photographs spread throughout each chapter Economy books are printed in black and white and include pictures only in chapter openings Required PB Publishing currently allocates all overhead costs based on machine hours The company produced the following number of books during the prior year Deluxe Moderate Economy 50,000 150,000 200,000 Determine the overhead cost per book for each book type Determine the overhead cost per book, assuming that the volume based allocation system described in Requirement a is replaced with an activity based costing system 1B PB Publishing produces two kinds of skateboards Selected unit data for the two boards for the last quarter follow Basco Boards Shimano Boards Production costs Direct materials $ 24 30 $ 36 60 Direct labor $ 30 30 $ 51 60 Allocated overhead $ 15 15 $ 18 60 Total units produced and sold 4,300 8,300 Total sales revenue $ 367,650 $ 1,020,900 PB Publishing allocates production overhead using activity based costing It allocates delivery expense and sales commissions, which amount to $55,500 per quarter, to the two products equally Required Compute the per unit cost for each product ( Do not round intermediate calculations Round your answers to 2 decimal places ) Compute the profit for each product 1C PB Publishing produces video games in three market categories commercial, home, and miniature PB has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours The company recently implemented an ABC system when it installed computer controlled assembly stations that rendered the traditional costing system ineffective In implementing the ABC system, the company identified the following activity cost pools and cost drivers Category Total Pooled Cost Types of Costs Cost Driver Unit $ 712,800 Indirect labor wages, supplies, factory utilities, machine maintenance Machine hours Batch 729,600 Materials handling, inventory storage, labor for setups,packaging, labeling and shipping, scheduling Number of production orders Product 210,300 Research and development Time spent by research department Facility 489,700 Rent, general utilities, maintenance, facility depreciation, admin salaries Square footage Additional data for each of the product lines follow Commercial Home Miniature Total Direct materials cost $ 36 80 unit $ 24 70 unit $ 29 30 unit Direct labor cost $ 15 10 hour $ 15 10 hour $ 18 30 hour Number of labor hours 7,000 11,300 2,300 20,600 Number of machine hours 17,000 45,000 19,000 81,000 Number of production orders 210 1,900 990 3,100 Research and development time 12 21 67 100 Number of units 17,000 48,000 16,000 81,000 Square footage 17,000 45,000 21,000 83,000 Required Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base Also determine the combined cost of all three product lines Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs Determine the combined cost of all three product lines

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This question has 3 parts. Thank you. 1 A PB Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce

This question has 3 parts. Thank you.

1 A

PB Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes.

		Type of Textbook
Activity (Cost)	Cost Driver	Deluxe	Moderate	Economy
Machine maintenance ($300,000)	Number of machine hours	250	750	1,000
Setups ($760,000)	Number of setups	40	35	5
Packing ($192,000)	Number of cartons	20	40	60
Photo development ($448,000)	Number of pictures	3,500	1,500	2,000

Deluxe textbooks are made with the finest-quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings. Required

PB Publishing currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year:

Deluxe	Moderate	Economy
50,000	150,000	200,000

Determine the overhead cost per book for each book type.

Determine the overhead cost per book, assuming that the volume-based allocation system described in Requirement a is replaced with an activity-based costing system.

PB Publishing produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow:

	Basco Boards		Shimano Boards
Production costs
Direct materials	$	24.30	$	36.60
Direct labor	$	30.30	$	51.60
Allocated overhead	$	15.15	$	18.60
Total units produced and sold		4,300		8,300
Total sales revenue	$	367,650	$	1,020,900

PB Publishing allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $55,500 per quarter, to the two products equally. Required

Compute the per-unit cost for each product. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Compute the profit for each product.

PB Publishing produces video games in three market categories: commercial, home, and miniature. PB has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers:

Category	Total Pooled Cost		Types of Costs	Cost Driver
Unit	$	712,800	Indirect labor wages, supplies, factory utilities, machine maintenance	Machine hours
Batch		729,600	Materials handling, inventory storage, labor for setups,packaging, labeling and shipping, scheduling	Number of production orders
Product		210,300	Research and development	Time spent by research department
Facility		489,700	Rent, general utilities, maintenance, facility depreciation, admin. salaries	Square footage

Additional data for each of the product lines follow:

	Commercial			Home			Miniature			Total
Direct materials cost	$	36.80	/unit	$	24.70	/unit	$	29.30	/unit
Direct labor cost	$	15.10	/hour	$	15.10	/hour	$	18.30	/hour
Number of labor hours		7,000			11,300			2,300			20,600
Number of machine hours		17,000			45,000			19,000			81,000
Number of production orders		210			1,900			990			3,100
Research and development time		12	%		21	%		67	%		100	%
Number of units		17,000			48,000			16,000			81,000
Square footage		17,000			45,000			21,000			83,000

Required

Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines.
Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines.