Z14 X V fx B C DE F G H K M N 0 P Q R S T U V W X Y Z AA AB AC 4 No credit will be given for just answers. Coastal Corporation manufactures two types of kayaks-Ocean and Lake-and applies manufacturing overhead to all units using machine hours. Production information follows. Ocean Lake 8 Anticipated volume (units) 58,500 31,200 Direct-material cost per unit 46 S 69 10 Direct-labor cost per unit 51 60 11 12 The controller, who is studying the use of activity-based costing, has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing, and purchase orders. Data on the number of setups, machine hours, and purchase orders, which are the 13 (activities' three respective cost drivers, 14 Ocean Lake 15 Setups 176 136 16 Machine hours 62,400 87,750 17 Purchase orders 200 150 18 19 20 The firm's total overhead is: $23,423,400 21 It is subdivided as follows: manufacturing setups $5,110,560 22 machine processing $14,054,040 23 purchase orders $4,258,800 24 Required: 25 1. Compute the per unit total manufacturing cost of Ocean and Lake kayaks by using the company's current overhead costing procedures with machine hours. 26 (show all costs included in manufacturing costs) 27 2. Compute the per unit total manufacturing cost of Ocean and Lake kayaks by using activity-based costing 28 (show all costs included in manufacturing costs) 29 3. Assume that the current selling price of a Lake Kayak is $650.00 and the marketing manager is contemplating a $100 discount to stimulate volume. Is this discount advisable? Show calculations to support your answer. 30 31 4. If the company wants a 25% markup, determine pri Assume competitors are selling the kayaks for $400 and $600 for ocean and lake kayaks respectively... 32 33 5. Which method should the company use and why? 34 question sheet 2 | Sheet3 + Select destination and press ENTER or choose Paste m - - I Type here to search W 9 6:30 PM X ( 1 )) 12/4/2020