Tulip Company produces two products, T and U. The indirect labor costs include the following two items:
Plant supervision.....................$700,000
Setup labor (indirect)..................300,000
Total indirect labor................$1,000,000
The following activity-base usage and unit production information is available for the two products:

a. Determine the single plant wide factory overhead rate, using direct labor hours as the activity base.
b. Determine the factory overhead cost per unit for Products T and U, using the single plant wide factory overhead rate.
Factory overhead cost per unit
Product T..........$
Product U..........$
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.
____________________Setup ___________Supervision
Activity rate $.............per setup...................$ per dlh
d. Determine the factory overhead cost per unit for Products T and U, using activity-based costing.
Factory overhead cost per unit
Product T..........$
Product U..........$

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Direct Labor Hours Number of Setups Units Product T 20,000 900 200 30,000 Product U 200 1,100 Total 400 2,000 50,000