C2 - Please solve all sub-part questions with all steps. Thanks XYZ Electronics manufactures two large-screen smart television models: the Elite which sellsfor OMR 160 and a new model, the Superior, which sells for OMR 130. Annual production is 2000units for the Elite and 8000 units for the Superior.The company's managers identified five activity cost pools and related cost drivers and accumulatedoverhead by cost pool as follows.Cost DriverEstimated OverheadCostExpected Use of Cost DriverPer TelevisionActivityExpected Use ofCost DriversEliteSuperior2Material handlingMachine setupsQuality inspectionsQuality controlNumber of requisitions 135,000 OMR127,500 OMRNumber of inspections 127,000 OMR|Number of inspections 189,500 OMRSupervising production Number of supervisors 120,000 OMR31Number of setups52310418126190009,00010,000Requirements:3. Compute the overhead cost per unit for each product.4. Comment on the comparative overhead cost per unit.

Overhead means all indirect costs incurred in the manufacturing or selling of products. Under…

XYZ Electronics manufactures two large-screen smart television models: the Elite which sells for OMR 160 and a new model, the Superior, which sells for OMR 130. Annual production is 2000 units for the Elite and 8000 units for the Superior. The company's managers identified five activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Activity Cost Driver Estimated Overhead Cost Expected Use of Cost Drivers Expected Use of Cost Driver Per Television Elite Superior 2 Material handling Machine setups Quality inspections Quality control |Number of requisitions 135,000 OMR 127,500 OMR Number of inspections 127,000 OMR |Number of inspections 189,500 OMR Supervising production |Number of supervisors 120,000 OMR 3 1 |Number of setups 2 3 10 18 12 19000 9,000 10,000 Requirements: 3. Compute the overhead cost per unit for each product. 4. Comment on the comparative overhead cost per unit.

XYZ Electronics manufactures two large-screen smart television models: the Elite which sells for OMR 160 and a new model, the Superior, which sells for OMR 130. Annual production is 2000 units for the Elite and 8000 units for the Superior. The company's managers identified five activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Activity Cost Driver Estimated Overhead Cost Expected Use of Cost Drivers Expected Use of Cost Driver Per Television Elite Superior 2 Material handling Machine setups Quality inspections Quality control |Number of requisitions 135,000 OMR 127,500 OMR Number of inspections 127,000 OMR |Number of inspections 189,500 OMR Supervising production |Number of supervisors 120,000 OMR 3 1 |Number of setups 2 3 10 18 12 19000 9,000 10,000 Requirements: 3. Compute the overhead cost per unit for each product. 4. Comment on the comparative overhead cost per unit.

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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