Hello, Please fill the table with answers. PFA screenshot for the table and question with values. ### Costing and Processing ActivitiesThis table provides a breakdown of various costing activities and their rates, along with a comparison of two costing methods: Activity-Based Costing and Traditional Costing.#### A. Processing Costs1. **Order Processing** - Cost: $508 per Order Processed (OP)2. **Machine Processing** - Cost: $38 per Machine Hour (MH)3. **Product Inspection** - Cost: $23 per Inspection Hour (IH)#### B. Activity-Based Costing- **Regular** - No data provided.- **Deluxe** - No data provided.#### C. Traditional Costing- **Regular** - No data provided.- **Deluxe** - No data provided.### Explanation- **Order Processing**: Refers to the cost incurred every time an order is processed.- **Machine Processing**: Indicates the expense associated with operating machinery per hour.- **Product Inspection**: The cost linked with the inspection time per hour.The table is structured to offer insights into different costing strategies utilized for managing financial resources within a production framework. The two costing methods outlined—Activity-Based Costing and Traditional Costing—are techniques that allocate costs differently based on the nature of production orders. However, specific cost details for regular and deluxe products in both costing models have not been provided. **Title: Activity-Based Costing Analysis for Fairchild, Inc.****Introduction:**Fairchild, Inc. manufactures two products, Regular and Deluxe, using a costing system that applies overhead based on direct labor hours. The anticipated overhead and direct labor hours for the upcoming accounting period are $2,138,400 and 42,400 hours, respectively. This analysis provides details on the products and the activities driving their costs.**Product Information:****Regular:**- **Estimated Production Volume:** 2,200 units- **Direct Materials Cost:** $36 per unit- **Direct Labor per Unit:** 4 hours at $23 per hour**Deluxe:**- **Estimated Production Volume:** 5,600 units- **Direct Materials Cost:** $50 per unit- **Direct Labor per Unit:** 6 hours at $23 per hour**Overhead Allocation:**Fairchild's overhead of $2,138,400 is allocated across three major activities:- **Order Processing:** $254,000- **Machine Processing:** $1,580,800- **Product Inspection:** $303,600These activities are driven by the number of orders processed, machine hours worked, and inspection hours, respectively.**Activity Data:**| | Orders Processed | Machine Hours Worked | Inspection Hours ||---------------|------------------|----------------------|------------------|| **Regular** | 240 | 16,800 | 5,600 || **Deluxe** | 260 | 24,800 | 7,600 || **Total** | 500 | 41,600 | 13,200 |**Requirements:****A.** Compute the pool rates for order processing, machine processing, and product inspection in an activity-based costing system.**B.** Assume the use of activity-based costing to compute the unit manufacturing costs for Regular and Deluxe if the expected manufacturing volume is attained. *(Round your intermediate calculations and final answers to 2 decimal places.)***C.** Determine how much overhead would be applied to a unit of Regular and Deluxe if the company used traditional costing, applying overhead solely on the basis of direct labor hours. Which product would be undercosted or overcosted by this procedure? *(Round your intermediate calculations and final answers to 2 decimal places.)*

Answer A Pool rate used for order processing =Order processingOrder processed=$254000$500=$508 per…

Fairchild, Inc., manufactures two products, Regular and Deluxe, and applies overhead on the basis of direct labor hours. Anticipated overhead and direct labor time for the upcoming accounting period are $2,138,400 and 42,400 hours, respectively. Information about the company's products follows. Regular- Estimated production volume: 2,200 units Direct materials cost: $36 per unit Direct labor per unit: 4 hours at $23 per hour Deluxe- Estimated production volume: 5,600 units Direct materials cost: $50 per unit Direct labor per unit: 6 hours at $23 per hour Fairchild's overhead of $2,138,400 can be identified with three major activities: order processing ($254,000), machine processing ($1,580,800), and product inspection ($303,600). These activities are driven by number of orders processed, machine hours worked, and inspection hours, respectively. Data relevant to these activities follow. Orders Machine Hours Inspection Processed Worked Hours 16,800 24,800 Regular 240 5,600 Deluxe 260 7,600 Total 500 41,600 13,200 Required: A. Compute the pool rates that would be used for order processing, machine processing, and product inspection in an activity-based costing system. B. Assuming use of activity-based costing, compute the unit manufacturing costs of Regular and Deluxe if the expected manufacturing volume is attained. (Round your intermediate calculations and final answers to 2 decimal places.) C. How much overhead would be applied to a unit of Regular and Deluxe if the company used traditional costing and applied overhead solely on the basis of direct labor hours? Which of the two products would be undercosted by this procedure? Overcosted? (Round your intermediate calculations and final answers to 2 decimal places.)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q