Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 43,000 units next year and Product L is expected to sell 8,600 units. A unit of either product requires 0.5 direct labor-hours.
The company's total manufacturing overhead for the year is expected to be $2,193,000.
Required:
1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to each product?
1-b. Compute the total amount of overhead cost that would be applied to each product.
2. Management is considering an activity-based costing system and would like to know what impact this change might have on product costs. For purposes of discussion, it has been suggested that all of the manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in half between the two products, with $1,096,500 assigned to Product H and $1,096,500 assigned to Product L.
If this suggestion is followed, how much overhead cost per unit would be assigned to each product?
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Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product His expected to sell 45,000 units next year and Product Lis expected to sell 9,000 units. A unit of either product requires 0.2 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $918,000. Required: 1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would...
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Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 42,000 units next year and Product L is expected to sell 8,400 units. A unit of either product requires 0.8 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $3,427,200. Required: 1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed,...
Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 42,000 units n year and Product L expected to sell 8,400 units. A unit of either product requires 0.8 direct labor-hours The company's total manufacturing overhead for the year is expected to be $3,427,200. Required 1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this meth is followed, how much overhead cost per unit...
Check my work Exercise 4-4 Contrast ABC and Conventional Product Costs [LO4-4] Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 48,000 units next year and Product L is expected to sell 9,600 units. A unit of either product requires 0.7 direct labor-hours. points Skipped The company's total manufacturing overhead for the year is expected to be $3,427,200. eBook Required: 1-a. The company currently applies manufacturing overhead to products using direct...
Exercise 4-4 Contrast ABC and Conventional Product Costs (L04-4) Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product His expected to sell 38,000 units next year and Product Lis expected to sell 7,600 units. A unit of either product requires 0.2 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $775,200. Required: 1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method...
Exercise 4-4 Contrast ABC and Conventional Product Costs (L04-4] Pacifica Industrial Products Corporation makes two products, Product Hand Product L. Product H is expected to sell 47,000 units next year and Product L is expected to sell 9,400 units. A unit of either product requires 0.9 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $4,314,600. Required: 1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this...
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Exercise 4-4 Contrast ABC and Conventional Product Costs (L04-4) Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 33,000 units next year and Product Lis expected to sell 6,600 units. A unit of either product requires 0.6 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $2,019,600. Required: 1-a. The company currently applies manufacturing overhead to products using direct labor-hours...
value 4.00 points Exercise 34 Contrast ABC and Conventional Product Costs [LO3 4 Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 34,000 units next year and Product L is expected to sell 6,800 units. A unit of either product requires 0.8 direct labor-hours The company's total manufacturing overhead for the year is expected to be $2,774,400 Required: 1-a. The company currently applies manufacturing overhead to products using direct labor-hours as...
Pacifica Industrial Products Corporation makes two products, Product Hand Product L Product H is expected to sell 47,000 units next year and Product Lis expected to sell 9,400 units. A unit of either product requires 0.9 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $4,314,600. Required: 1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would...
Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 48,000 units next year and Product L is expected to sell 9,600 units. A unit of either product requires 0.7 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $3,427,200. Required: 1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per...