Traditional vs ABC Part 1 Cabell Company manufacturer two products, Product C and product D. Data regarding the two Products are as follows: Direct Labor Total Direct Labor Product Annual Production Hours per Unit C D 0.50 0.60 2,600 units Hours 1,300 hours 1,200 units 720 hours Product C requires $17.70 in direct materials per unit, and Product D requires $27.90 in direct materials per unit. The company pays an average direct labor rate of $16 per hour. Therefore, Product C Direct Labor per unit = $16 times .50 per hour = $8.00 DL per unit. Product D Direct Labor per unit = $16 times .60 per hour $9.60 DL per unit The company has historically used direct labor hours as the activity base for applying overhead to the Products. Manufacturing Overhead is estimated to be $99,590 per year. In Summary: Estimated Volume Direct labor hours per unit 2,600 units Product C Product D 1,200 units 0.50 0.60 Direct materials cost per unit $17.70 $27.90 Direct labor cost per unit $8.00 $9.60 Question 60 (2 points) Itranscript Calculate the predetermined overhead rate using the traditional overhead allocation with direct labor hours as the base. A/ Question 61 (2 points) Itranscript Determine the total cost to produce one unit of Product C. (Use the overhead rate. Question 61 (2 points) Itranscript Determine the total cost to produce one unit of Product C. (Use the overhead rate calculated above in Part A). A/ Question 62 (2 points) Itranscript Determine the total cost to produce one unit of product D. (Use the overhead rate calculated abvove in Part A) PJ Previous Page Next Page Page 10 of 11