Zhedong Electronics Company in Hangzhou, China, plans to use activity-based costing todetermine its product costs. It presently uses a single plantwide factory overhead rate forallocating factory overhead to products, based on direct labor hours. The total factoryoverhead cost is as follows (currency unit in Chinese RMB, \):Department Factory OverheadProduction SupportProduction (factory overhead only)Total cost¥1,225,000175,000¥1,400,000-The company determined that it performed four major activities in the Production SupportDepartment. The budgeted activity costs are as follows:Production Support Department Budgeted Activity Cost-SetupProduction controlQuality controlMaterials management¥ 428.750e245,000183,750-367,500¥1,225 000-TotalZhedong estimated the following activity-base usage and units produced for each of its threeproducts:ProductionOrdersMaterialDirectLabor Hrs.Number ofProductsUnitsSetupsInspectionsRequisitionsLCD TV.10,00025,000808035320Tablet.2,00010,000404040400Smartphone..50,000140,00030Total cost62,000175,00012512575750Instructionse1. Determine the factory overhead cost per unit for the LCD TV, tablet, and smartphoneunder the single plantwide factory overhead rate method. Use direct labor hours as theactivity base. (20%)2. Determine the factory overhead cost per unit for the LCD TV, tablet, and smartphoneunder activity-based costing. Round your answers to two decimal places. (50%)3. Which method provides more accurate product costing? Why? (30%)«

Name: Zhedong Electronics Company in Hangzhou, China, plans to use activity
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Zhedong Electronics Company in Hangzhou, China, plans to use activity-based costing todetermine its product costs. It presently uses a single plantwide factory overhead rate forallocating factory overhead to products, based on direct labor hours. Th

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1. Determine the factory overhead cost per unit for the LCD TV, tablet, and smartphone under the single plantwide factory overhead rate method. Use direct labor hours as the activity base. (20%) 2. Determine the factory overhead cost per unit for the LCD TV, tablet, and smartphone under activity-based costing. Round your answers to two decimal places. (50%)e

1. Determine the factory overhead cost per unit for the LCD TV, tablet, and smartphone under the single plantwide factory overhead rate method. Use direct labor hours as the activity base. (20%) 2. Determine the factory overhead cost per unit for the LCD TV, tablet, and smartphone under activity-based costing. Round your answers to two decimal places. (50%)e

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A 162.