Question

Problem 3-16A Part 2 2. Management is considering using activity-based costing to assign manufacturing overhead cost to products. The activity-based costing system would have the following four activity cost pools: Activity Cost Pool Activity Measure Estimated Overhead Cost Maintaining parts inventory Number of part types $ 225,000 Processing purchase orders Number of purchase orders 182,000 Quality control Number of tests run 45,000 Machine-related Machine-hours 460,000 $ 912,000 Expected Activity Activity Measure LEC 40 LEC 90 Total Number of part types 600 900 1,500 Number of purchase orders 2,000 800 2,800 Number of tests run 500 1,750 2,250 Machine-hours 1,600 8,400 10,000 Determine the activity rate for each of the four activity cost pools. (Round your answers to 2 decimal places.) ReferenceseBook & Resources WorksheetDifficulty: 3 HardLearning Objective: 03-03 Compute product costs using activity-based costing. Problem 3-16A Part 2Learning Objective: 03-02 Compute activity rates for an activity-based costing system.Learning Objective: 03-04 Contrast the product costs computed under activity-based costing and conventional costing methods. Check my work 3.value: 1.00 pointsRequired information Problem 3-16A Part 3 3. Using the activity rates you computed in part (2) above, do the following: a. Determine the per unit amount of manufacturing overhead cost that would be assigned to each product using the activity-based costing system. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Compute the unit product cost of each product. (Do not round intermediate calculations. Round your final answers to 2 decimal places)

Answer 1

SWER 2.a Per unit manufacturing overhead cost LEC40 Activity Measure units LEC90 Manufacturing Activity overhead cost S Measure units Manufacturing overhead cost S Activity Cost PoolsActivity Rate S Maintaining parts nvento Processing pur orders Quality control Machine-related Total Manufacturing overhead costs S Number of units 160 450 72000 800 128000 chase 60 10 52.25 1300 800 4000 78000 8000 209000 700 1500 8000 42000 15000 418000 367000 50000 603000 25000 Per Unit manufacturing overhead cost S 7.34 24.12 2.b. Unit product cost Unit product cost LEC40 LEC90