Trendy inc. makes wo styles of trophies, basic and deluxe, and eperates at capacty. Trendy does large custom orters. Trendy budpets to produce to,000 basic trophies and 5 .oco delume trophies: Manulacturing takes place in two production departnents; forming and assembly. In the forming department, indirect marudacturing costs are accumulated in two cost pools, set up and generat overbead. In the assembly department, as indirect manufacturing costs are accumulated in one general ovehead cost pool. The bsuc trophios are foemed in batches of 200 inits per batch but because of the more intricate delal of the deluxe tephies, they are formed in balches of 50 units per batch. (Clek the icon to vew budgeted information.) Read the teguirements Nent, calculate the budgeted crethead tave for total overhead alocaled based on wolal diect costs. Fint select the formula, then entor the appicable amounts and caiculate the rate (Rocund ycar antwer to the nearest cent, 5. 0. Abbreviations used: DC = Direct cost, DC. = Drect labor, 5 = doflar) Finaly, calculate unt cost for the basic and deluxe trophies. (Round your final answer to the neareat cent, 5X ) 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 b Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated ing overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in because of the more intricate detall of the deluxe trophies, they are formed in batches of 50 units per batch. EIt (Click the icon to view budgeted information.) Read the require Data table Uirect manuract. Forming Assembly Total direct manu Total direct costs Next, calculate th answer to the ne The controller has asked you to compare plantwide, department, and activity-based cost allocation. ter the applicable amount 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.) 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. 3. Calculate the budgeted unit cost of basic and deluxe trophies if Trendy allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department. 4. Explain briefly why plantwide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why? Next, calculate the budgeted overhead rate for total overhead allocated based on total direct costs. First select the answer to the nearest cent, $X. XX. Abbreviations used: DC= Direct cost, DL = Direct labor, $= dollar.) d rate $ Finally, calculate unit cost for the basic and deluxe trophies. (Round your final answer to the nearest cent, $X.XX.)
