Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Actual Activity Usage Setups Parts Inspections 1. Using a plantwide overhead rate based on 5,250 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Activity Driver $ 21,000 (20 machine setups) 16,800 (16,000 parts) 25,200 (100 inspections) $ 63,000 Product A 2,100 units $ 31 per unit $ 51 per unit 2 per unit a. Compute overhead activity rates Activity Machine setup Parts handling Quality inspection Activity Product A 8 setups 10,000 parts Complete this question by entering your answers in the tabs below. Machine setup Parts handling Quality inspection Product B 420 units $ 41 per unit $ 61 per unit 2.50 per unit Required 1 Required 2 Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Note: Round your final answers to 2 decimal places. 40 inspections Product B 12 setups 6,800 parts 60 inspections Activity Rate per setup per part per inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Allocated Cost Product A Product B Show less A

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Consider the following data for two products of Vigano Manufacturing.
Budgeted
Cost
Activity
Machine setup
Parts handling
Quality inspections
Total budgeted overhead
Unit Information
Units produced
Direct materials cost
Direct labor cost
Direct labor hours
Actual Activity Usage
Setups
Parts
Inspections
1. Using a plantwide overhead rate based on 5,250 direct labor hours, compute the total product cost per unit for each product.
2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead
cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per
unit for each, and (c) compute product cost per unit for each.
a. Compute overhead activity rates
Activity
Machine setup
Parts handling
Quality inspection
Activity Driver
$ 21,000 (20 machine setups)
16,800 (16,000 parts)
25,200 (100 inspections)
$ 63,000
Product A
2,100 units
$ 31 per unit
$ 51 per unit
2 per unit
Machine setup
Parts handling
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Consider the following additional information about these two products. If activity-based costing is used to allocate overhead
cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost
per unit for each, and (c) compute product cost per unit for each.
Note: Round your final answers to 2 decimal places.
Activity
Quality inspection
Total allocated cost
Units produced
Product A
8 setups
10,000 parts
Product A
Product B
420 units
$ 41 per unit
$ 61 per unit
2.50 per unit
40 inspections
per setup
per part
per inspection
b. Allocate overhead to Product A, B and compute overhead cost per unit
Allocated Cost
Product A
Overhead cost per unit
c. Product cost per unit using activity-based costing
Per Unit
Product B
12 setups
6,800 parts
60 inspections
Activity Rate
Product Cost per
Unit
Product B
Show less A
Pr
Transcribed Image Text:Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Actual Activity Usage Setups Parts Inspections 1. Using a plantwide overhead rate based on 5,250 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. a. Compute overhead activity rates Activity Machine setup Parts handling Quality inspection Activity Driver $ 21,000 (20 machine setups) 16,800 (16,000 parts) 25,200 (100 inspections) $ 63,000 Product A 2,100 units $ 31 per unit $ 51 per unit 2 per unit Machine setup Parts handling Complete this question by entering your answers in the tabs below. Required 1 Required 2 Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Note: Round your final answers to 2 decimal places. Activity Quality inspection Total allocated cost Units produced Product A 8 setups 10,000 parts Product A Product B 420 units $ 41 per unit $ 61 per unit 2.50 per unit 40 inspections per setup per part per inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Allocated Cost Product A Overhead cost per unit c. Product cost per unit using activity-based costing Per Unit Product B 12 setups 6,800 parts 60 inspections Activity Rate Product Cost per Unit Product B Show less A Pr
Consider the following data for two products of Vigano Manufacturing.
Budgeted
Cost
Activity
Machine setup
Parts handling
Quality inspections
Total budgeted overhead
Unit Information
Units produced
Direct materials cost
Direct labor cost
Direct labor hours
Actual Activity Usage
Setups
Parts
Inspections
Activity Driver
$ 21, 000 (20 machine setups)
16,809 (16,000 parts)
25,200 (100 inspections)
$ 63,000
Product A
1. Using a plantwide overhead rate based on 5,250 direct labor hours, compute the total product cost per unit for each product.
2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead
cost. (a) compute overhead activity rates. (b) allocate overhead cost to Product A and Product B and compute overhead cost per
unit for each, and (c) compute product cost per unit for each.
Per Unit
2,100 units
$ 31 per unit
$
51 per unit
2 per unit
Product A
Product B
Product B
420 units
$ 41 per unit
$ 61 per unit
2.50 per unit
Product A
8 setups
10,000 parts
Complete this question by entering your answers in the tabs below.
Direct Labor
40 inspections
Required 1 Required 2
Using a plantwide overhead rate based on 5,250 direct labor hours, compute the total product cost per unit for each product.
Direct
Materials
Product Cost
per Unit
Overhead
Product B
12 setups
6,000 parts
60 inspections
< Required 1
Required 2 >
Transcribed Image Text:Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Actual Activity Usage Setups Parts Inspections Activity Driver $ 21, 000 (20 machine setups) 16,809 (16,000 parts) 25,200 (100 inspections) $ 63,000 Product A 1. Using a plantwide overhead rate based on 5,250 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost. (a) compute overhead activity rates. (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Per Unit 2,100 units $ 31 per unit $ 51 per unit 2 per unit Product A Product B Product B 420 units $ 41 per unit $ 61 per unit 2.50 per unit Product A 8 setups 10,000 parts Complete this question by entering your answers in the tabs below. Direct Labor 40 inspections Required 1 Required 2 Using a plantwide overhead rate based on 5,250 direct labor hours, compute the total product cost per unit for each product. Direct Materials Product Cost per Unit Overhead Product B 12 setups 6,000 parts 60 inspections < Required 1 Required 2 >
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