A.Using the traditional system, determine the operating profit per unit for each style of faucet.В.Determine the activity-cost-driver rate for setup costs and inspection costs.С.Using the ABC system, for each style of faucetCompute the estimated overhead costs per unit.Compute the estimated operating profit per unit.1.2. Shym Accents Company manufactures and sells three styles of kitchen faucets: Gold, Silver, and Platinum.Production takes 25, 25, and 10 machine hours to manufacture 1000-unit batches of gold, silver and platinumfaucets, respectively. The following additional data apply:GOLDSILVERPLATINUMSales in units, forecastedData per faucetSelling price30,00050,00040,000$ 40$ 30$ 30$ 8$ 15$ 12$ 4$ 3$ 3$ 8$ 9$ 9Direct materialDirect laborOH based on DL hrs (traditional approach)Time her 1000-faucet batch10.025.0Direct labor hours40.030.0Machine hours25.010.0Setup hoursInspection hours1.00.51.03.020.020.0Total overhead costs and activity levels for the year are estimated as follows:ActivityOverhead CostsActivity Levels2,900 hours2,400 hours95 setup hours2,700 inspection hoursDirect labor hoursMachine hoursSetupsInspections$ 465,500$ 405,000$ 870,000

The difference between the traditional and activity based costing system lies in the treatment of…

Using the traditional system, determine the operating profit per unit for each style of faucet. Determine the activity-cost-driver rate for setup costs and inspection costs. Using the ABC system, for each style of faucet Compute the estimated overhead costs per unit. Compute the estimated operating profit per unit. 1. 2.

Using the traditional system, determine the operating profit per unit for each style of faucet. Determine the activity-cost-driver rate for setup costs and inspection costs. Using the ABC system, for each style of faucet Compute the estimated overhead costs per unit. Compute the estimated operating profit per unit. 1. 2.

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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