Question

Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3A Req 3B Compute the unit product cost for one unit of each model. Unit Product Cost Flexible Rigid < Req 1A Req2 >

Answer 1

1-a)	predetermined overhead rate
	Estimated manufacturing overhead/estimated direct labor hours
	588,000/16800
	35	per DLH	answer
	total estimated direct labor hours
		units	hr pu	total hrs
	Flexible	2,500	2.4	6,000
	Regular	9,000	1.2	10,800
	total estimated direct labor hours			16,800
1-b)	unit product cost
				Flexible	Rigit
	overhead rate		(a)	35	35
	Direct labor hours		(b)	6,000	10,800
	overhead assigned		c=a*b	210000	378000
	units produced		d	2,500	9,000
	overhead per unit		e=c/d	84	42
	unit product cost			Flexible	Rigit
	Direct materials cost per unit			100	90
	Direct labor cost per unit			40	25
	overhead cost per unit			84	42
	total unit product cost			224	157	answer
		unit produced cost
	Flexible	224
	Rigid	157
2)	Activity cost pool		estimated	total	activity
			oh cost	activity	rate
			(a)	(b)	c=a/b
	purchase orders		27,000	675	40	per order
	rework requests		17,000	340	50	per request
	product testing		220,000	1760	125	per test
	machine-related		324,000	4,320	75	per MH
3)	overhead assigned to each moder
	Activity cost pool		Flexible			Rigid
			activity	Activity	overhead	activity	Activity	overhead
			rate		assigned	rate		assigned
			a.	b	c=a*b	a.	b	c=a*b
	purchase orders		40	115	4600	40	560	22400
	rework requests		50	50	2500	50	290	14500
	product testing		125	800	100000	125	960	120000
	machine-related		75	1,000	75000	75	3,320	249000
	total overhead assigned				182100			405900
		total amount of
		overhead
	Fixid	182100
	Rigid	405900
4)				fixed	rigid
	overhead assigned		a	182100	405900
	units produced		b	2,500	9,000
	overhead per unit		c=a/b	72.84	45.1
	unit product cost			Flexible	Rigit
	Direct materials cost per unit			100	90
	Direct labor cost per unit			40	25
	overhead cost per unit			72.84	45.1
	total unit product cost			212.84	160.1	answer
		unit produced cost
	Flexible	212.84
	Rigid	160.1