Trendy Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Trendy does large custom orders. Trendy budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50 (Click the icon to view budgeted information.) Read the requirements I x Data Table The controller has asked you to compare plantwide, department, and activity-based cost allocation. Trendy Budgeted Information for the Year Ended November 30, 2020 Forming Department Basic Deluxe Total Direct materials $ 25,000 $ 19,800 $ 44,800 Direct manufacturing labor 24,000 25,000 49,000 Overhead costs: Set up 36,750 Overhead costs: General overhead 31,850 Basic 5,000 $ $ Assembly Department Direct materials Direct manufacturing labor Overhead costs: General overhead Deluxe 4,450 $ 19,500 Total 9,450 35,000 42,000 15,500 Requirement 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) Start by calculating the total direct costs for the basic and deluxe trophies departments Basic Deluxe Total Direct materials Forming $ 44.800 25,000 $ 5,000 19,800 $ 4,450 9,450 30,000 24,250 54,250 Assembly Total direct materials Direct manufacturing labor Forming Assembly Total direct manufacturing labor 24.000 25,000 49,000 15,500 19.500 35,000 39,500 44,500 84,000 69.500 68,750 $ 138,250 Total direct costs Next, calculate the budgeted overhead rate for total overhead allocated based on total direct costs. First select the formula, then enter the applicable amounts and calculate the rate. (Round your answer to the nearest cent, SX.XX. Abbreviations used: DC = Direct cost, DL = Direct labor, $ = dollar.) Total overhead costs Total direct costs Budgeted overhead rate = $ 0.80 per DC $ $ 110,600 138,250 Finally, calculate unit cost for the basic and deluxe trophies. (Round your final answer to the nearest cent, $X.XX.) Basic Total Total direct costs $ 69,500 $ 55,600 Deluxe 68,750 $ 55,000 138,250 Allocated overhead 110,600 $ 125,100 $ 123,750 $ 248,850 Total costs Unit cost $ 12.51 $ 24.75 Requirement 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. Start by calculating the budgeted overhead rate for the forming and assembly departments based on direct manufacturing labor costs. First select the formula, then enter the applicable amounts and calculate the rates. (Round the budgeted overhead rates to the nearest cent, $X.XX.) Budgeted overhead costs Budgeted direct labor costs Budgeted overhead rate Forming 68.600 $ 49,000 = $ 1.40 per DLS Assembly $ 42.000 $ 35.000 = $ 1.20 per DLS Finally, calculate the unit cost for the basic and deluxe trophies. (Round your final answer to the nearest cent, $X.XX.) Basic Total Deluxe 68750 Total direct costs 69500 138250 Allocated overhead Forming Department Assembly Department Total costs Unit cost
