Question

Need help with the blank blue boxes in "overhead assigned" section under part 3. please show work

Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places.) Number of units produced Direct labor cost (@ $31 per DLH) Direct materials cost Product A 12,500 units 0.12 DLH per unit $ 2.00 per unit Product B 1,600 units 0.21 DLH per unit $ 2.50 per unit Activity Machine setup Materials handling Quality control inspections Overhead costs $ 46,756 60,000 69,500 $176, 256 Required:

Answer 1

Requirement for Part 3)
Overhead allocation rate at ABC method:
Machine setup:
Overhead costs	46756
Total setups	3+22= 25
Overhead cost per setup	1870.24
materials handling:
Overhead costs	60000
Total parts	12500*10 + 1600*5=133000
Overhead cost per part	0.45112782
Quality control
Overhead costs	69500
Total Inspection hours	48+230= 278
Overhead cost per inspection hour	250
Overhead Assigned:
Product A:	Activity driver	Activity rate	Total Overhead Cost
Machine setup	3	1870.24	5610.72
Materials handling	125000	0.45112782	56390.97744
Quality control	48	250	12000
Total assigned overhead			74001.70
Total units			12500
Overhead allocation per unit			5.92
Product B:	Activity driver	Activity rate	Total Overhead Cost
Machine setup	22	1870.24	41145.28
Materials handling	8000	0.45112782	3609.022556
Quality control	230	250	57500
Total assigned overhead			102254.3
Total units			1600
Overhead allocation per unit			63.91
Total Manufacturing costs:	Product A	Product B
DM per unit	2	2.5
DL per unit	3.72	6.51
Overhead per unit	5.92	63.91
Total manufacturing cost per unit	11.64	72.92