Requir 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools: Activity Cost Pools and (Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost Estimated Overhead Cost $ 664,420 476,000 653,060 61,160 $ 1,854,640 Xactive Expected Activity 26,600 220 1 1,900 Pathbreaker 69,000 120 1 6,900 Total 95,600 340 2 8,800 Determine the activity rate for each of the four activity cost pools. 3. Using the activity rates and other data from the problem, determine the unit product cost of each product.
Requir 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools: Activity Cost Pools and (Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost Estimated Overhead Cost $ 664,420 476,000 653,060 61,160 $ 1,854,640 Xactive Expected Activity 26,600 220 1 1,900 Pathbreaker 69,000 120 1 6,900 Total 95,600 340 2 8,800 Determine the activity rate for each of the four activity cost pools. 3. Using the activity rates and other data from the problem, determine the unit product cost of each product.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Direct materials per unit
Direct labor cost per unit
Direct labor-hours per unit
Estimated annual production and sales
Estimated total manufacturing overhead
Estimated total direct labor-hours
$ 64.20
$ 17.60
Activity Cost Pools and (Activity Measures)
Supporting direct labor (direct labor-hours)
1.4 DLHS
19,000 units
The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours.
Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:
Batch setups (setups)
Product sustaining (number of products)
General factory (machine-hours)
Total manufacturing overhead cost
$50.40
$ 12.40
1 DLHs
69,000 units
$1,854,640
95,600 DLHs
Required:
1-a. Compute the predetermined overhead rate based on direct labor-hours.
1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product.
2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign its
manufacturing overhead to the following four activity cost pools:
Estimated
Overhead Cost
$ 664,420
476,000
653,060
61, 160
$ 1,854,640
Xactive
Expected Activity
26,600
220
1
1,900
Pathbreaker
69,000
120
1
6,900
Total
95,600
340
2
8,800
Determine the activity rate for each of the four activity cost pools.
3. Using the activity rates and other data from the problem, determine the unit product cost of each product.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3cae971-3c7b-4b58-988d-d641335a2bed%2F9b2e152b-713b-4004-96a9-7467a2a8ff48%2Fac12z6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Direct materials per unit
Direct labor cost per unit
Direct labor-hours per unit
Estimated annual production and sales
Estimated total manufacturing overhead
Estimated total direct labor-hours
$ 64.20
$ 17.60
Activity Cost Pools and (Activity Measures)
Supporting direct labor (direct labor-hours)
1.4 DLHS
19,000 units
The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours.
Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:
Batch setups (setups)
Product sustaining (number of products)
General factory (machine-hours)
Total manufacturing overhead cost
$50.40
$ 12.40
1 DLHs
69,000 units
$1,854,640
95,600 DLHs
Required:
1-a. Compute the predetermined overhead rate based on direct labor-hours.
1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product.
2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign its
manufacturing overhead to the following four activity cost pools:
Estimated
Overhead Cost
$ 664,420
476,000
653,060
61, 160
$ 1,854,640
Xactive
Expected Activity
26,600
220
1
1,900
Pathbreaker
69,000
120
1
6,900
Total
95,600
340
2
8,800
Determine the activity rate for each of the four activity cost pools.
3. Using the activity rates and other data from the problem, determine the unit product cost of each product.
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