rate computed in requirement a.c. Compute the production costs for each product for February using the cost drivers recommended by the employees anpredetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in Februarsame for activity-based costing as it was for the labor-hour-based allocation.)Complete this question by entering your answers in the tabs below.Required ARequired BRequired CComplete this question by entering your answers in the tabs below.Compute the production costs for each product for February using the cost drivers recommended by the employees and thepredetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in Februarywill be the same for activity-based costing as it was for the labor-hour-based allocation.) (Do not round intermediatecalculations.)Required ARequired BRequired CShow less ACompute the production costs for each product for February using direct labor-hours as the allocation base and thepredetermined rate computed in requirement a. (Do not round intermediate calculations.)ShortMediumTallDirect materialsDirect laborSetting up productionProcessing ordersHandling materialsUsing machinesPerforming quality management$4,000$2,500$2,000ShortMediumTallDirect materials$4,000$2,500$2,000Direct laborOverheadTotal costs< Required ARequired C>ShippingTotal costs< Required BRequired C College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using apredetermined rate based on direct labor-hours. A group of company employees recommended that CSC switch to activity-basedcosting and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for Year 5 for each activitycenter.RecommendedEstimatedEstimated CostActivitySetting up productionCost DriverCostDriver UnitsNumber of production runs$ 33,600120 runsProcessing ordersHandling materialsUsing machinesProviding quality managementPacking and shippingNumber of orders52,000200 ordersPounds of materials14,0007,000 poundsMachine-hours45,0009,000 hoursNumber of inspectionsUnits shipped48,00040 inspections38,00019,000 units$230,600In addition, management estimated 2,000 direct labor-hours for year 5.Assume that the following cost driver volumes occurred in February, year 5.ShortMediumTallNumber of units produced1,100600500Direct materials costs$4,000$2,500$2,000Direct labor-hours110130120Number of orders785Number of production runsPounds of material2500800100Machine-hours500300300Number of inspectionsUnits shipped2231,100600400Direct labor costs were $20 per hour.Required:a. Compute a predetermined overhead rate for year 5 for each cost driver recommended by the employees. Also compute apredetermined rate using direct labor-hours as the allocation base.b. Compute the production costs for each product for February using direct labor-hours as the allocation base and the predeterminedrate computed in requirement a.c. Compute the production costs for each product for February using the cost drivers recommended by the employees and thepredetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in February will be thesame for activity-based costing as it was for the labor-hour-based allocation.)Complete this question by entering your answers in the tabs below.Required ARequired BRequired CCompute a predetermined overhead rate for year 5 for each cost driver recommended by the employees. Also compute apredetermined rate using direct labor-hours as the allocation base. (Round your answers to 2 decimal places.)ActivityAllocation RateSetting up productionper runProcessing ordersper orderHandling materialsper Ib.per hourper insp.per unitUsing machinesPerforming quality managementPacking & shippingDirect labor hour rateper hourRequired ARequired B >

Name: rate computed in requirement a.c. Compute the production costs for ea
Uploaded: 2024-03-20T06:33:06.000Z
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Description: rate computed in requirement a.c. Compute the production costs for each product for February using the cost drivers recommended by the employees anpredetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to pro