Treviso Manufacturing Company has developed the attached information relating to manufacturing overhead activity cost pools and the related cost drivers for its manufacturing activities for $20$X$3.$

The actual production information for $20$X$3$ is also attached.

The company is currently using traditional costing using units produced as the allocation base $($cost driver$)$ to apply manufacturing overhead to production.

REQUIRED: $(1)$

$(2)$

$(3)$

$(4)$

Using the attached answer sheet, calculate the predetermined manufacturing overhead rate that the company would use under traditional costing. Round your calculation to five decimal places.

Using the attached answer sheet, calculate the total costs and the cost per unit for each product, using traditional costing. Round all calculations for costs to the nearest whole dollar and the costs per unit to three decimal places.

Using the attached answer sheet, calculate the predetermined manufacturing overhead rates that the company would use under activity based costing.

Round all calculations to five decimal places.

Using the attached answer sheet, calculate the total costs and the cost per unit for each product, using activity based costing. Round all calculations for costs to the nearest whole dollar and the costs per unit to three decimal places.

TREVISO MANUFACTURING COMPANY

COST POOLS AND COST DRIVERS FOR ACTIVITY BASED COSTING

Activity Center

Budgeted Activity Cost

Budgeted Cost Driver

Materials Handling

$

$810,000$

$900,000$ kilograms

Setup

$700,000$

Machine Operations

$960,000$

$1,400$ setups

$12,000$ machine hours

Inspection

Packaging

$60,000$

$275,000$

$800$ batches

$315,000$ units produced

Total Cost

$

$2,805,000$

TREVISO MANUFACTURING COMPANY

ACTUAL PRODUCTION INFORMATION

FOR YEAR $20$X$3$

Product A

Product B

Specialties

Direct Materials Used

$400,000$ kg

$300,000$ kg

$200,000$ kg

Direct Materials Cost

$

$900,000$

$

$600,000$

$

$800,000$

Direct Labor Cost

$

$200,000$

$

$250,000$

$

Number of Setups

$600$

$300$

$300,000$

Machine Hours Used

$6,000$

$2,000$

$500$

Number of Batches

$100$

$150$

$4,000$

$550$

Number of Units Produced

$150,000$

$115,000$

$50,000$