Walsh Company produces mathematical and financial calculators and operates at capacity. Data related to the two products follows. B (Click the icon to view the data.) Total manufacturing overhead costs are: (Click the icon to view the overhead costs.) Requirements 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. 2 Compute the manufacturing cost per unit for each product. 3 How might Walsh's managers use the new cost information from its activity-based costing system to better manage its business? X Requirement 1. Choose a cost driver for each overhead cost pool and calculate the manufact Begin by choosing a cost driver for each overhead cost pool. 0 Data Table Cost driver Rate Mathematical Financial Activity Machining Set up 200.000 Inspection $ $ 100,000 300,000 $ 100,000 $ $ 5,000 600,000 200,000 Annual production in units Direct materials cost Direct manufacturing labor cost Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours Determine the formula to calculate the overhead allocated to each product 10,000 25,000 50,000 Now calculate the total overhead allocated to each product and the overhead cost per unit. (R 100 100 700 300 Mathematical Financial Machining costs Setup costs Data Table Inspection costs Total overhead costs Total Manufacturing overhead cost per unit $ 450,000 Machining costs Setup costs Inspection costs 120,000 100,000 Requirement 2. Compute the manufacturing cost per unit for each product. Determine the formula to calculate the direct costs per unit. . Direct cost per unit Print Done Choose from any list or enter any number in the input fields and then continue to the next al Requirement 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. Begin by choosing a cost driver for each overhead cost pool. Activity Cost driver Rate Machining Set up Inspection Determine the formula to calculate the overhead allocated to each product. X Overhead allocated to product Now calculate the total overhead allocated to each product and the overhead cost per unit. (Round your answer to the nearest cent.) Mathematical Financial Machining costs Setup costs Inspection costs Total overhead costs Manufacturing overhead cost per unit Requirement 2. Compute the manufacturing cost per unit for each product. Determine the formula to calculate the direct costs per unit. . Direct cost per unit Now compute the manufacturing cost per unit for each product. Mathematical Financial Manufacturing cost per unit Requirement 3. How might Walsh's managers use the new cost information from its activity-based costing system to better manage its business? (Select all that apply.) A. Managers can use this information to devise employee compensation packages. B. Managers can use this information to improve advertising campaigns and their public image. C. Managers can use this information for pricing and product-mix decisions, and for cost reduction and process-improvement decisions. D. Managers can use this information for design decisions, and to plan and manage activities
