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Tulip Company produces two products, T and U. The indirect labor costs include the following two items: Plant supervision Setup labor (indirect) $700,000 300,000
Tulip Company produces two products, T and U. The indirect labor costs include the following two items: Plant supervision Setup labor (indirect) $700,000 300,000 $1,000,000 Total indirect labor The following activity-base usage and unit production information is available for the two products: Number of Direct Setups Labor Hours Units Product T 200 20,000 900 Product U 200 30,000 1,100 Total 400 50,000 2,000 a. Determine the single plantwide factory overhead rate, using direct labor hours as the activity base. per dlh b. Determine the factory overhead allocated per unit for Products T and U, using the single plantwide factory overhead rate. Round your answers to two decimal places. Product T Product U Factory overhead cost per unit c. Determine the activity rate for plant supervision and setup labor, assuming that the activity base for supervision is direct labor hours and the activity base for setup labor is number of setups. Activity rate Setup per setup Supervision per dlh d. Determine the factory overhead allocated per unit for Products T and U, using the activity-based costing method. Round your answers to two decimal places. Product T Product U Factory overhead cost per unit
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