Question

The company has a conventional costing system in which manufacturing overhead is applied to units based on direct Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below. Estimated total manufacturing overhead Estimated total direct labor-hours $1,743, 360 90,800 DLHS Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each 2. The company is considering replacing its conventional costing system with an activity-based costing system that wou manufacturing overhead to the following four activity cost pools: Activity Cost Pools and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) General factory machine-hours) Total manufacturing overhead cost Estimated Overhead Cost $ 621,989 416,000 647,840 157,540 $1,743,360 Expected Activity Xactive Pathbreaker Total 23,800 67,00 90,800 210 110 32e 2 1,700 6,700 8,400 Determine the activity rate for each of the four activity cost pools. 3. Using the activity rates and other data from the problem, determine the unit product cost of each product. Complete this question by entering your answers in the tabs below. Reg 1A Reg 16 Reg 2 Reg 3 Using the activity rates and other data from the problem, determine the unit product cost of each product. (Round your Intermediate calculations and final answers to 2 decimal places.)

Answer 1

Part 1 a -
Predetermined OH rate = 1743360 / 90800 = $ 19.2 per DLH
Part 1 b -
Data regarding DM and DL is missing
Part 2 -
Calculation of Predetermined OH allocation Rate
	Total Cost /	Allocation base=	Predetermined OH allocation rate
Supporting direct labour	621980	90800	6.85	Per labour hour
Setups	416000	320	1300	per setup
Product sustaining	647840	2	323920	per product
General Factory	57540	8400	6.85	per MH
	1743360
Part 3-
Data regarding DM and DL is missing