In: Accounting
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 2 hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $1,139,421 in manufacturing overhead costs and produce 15,000 units of Product W and 75,000 units of Product S during the current year. Unit cost for materials and direct labor are: Product S Product W Direct material $ 17 $ 24 Direct labor 11 13 Required: a-1. Compute the predetermined overhead rate under the current method of allocation. a-2. Determine the unit product cost of each product for the current year. b. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Total Activity Activity Cost Pool Total Cost Product S Product W Total Machine setups required $ 643,440 1,590 2,240 3,830 Purchase orders issued 58,266 555 192 747 Machine-hours required 221,640 7,760 10,710 18,470 Maintenance requests issued 216,075 736 939 1,675 $ 1,139,421 Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year Req A1Req A2Req B Compute the predetermined overhead rate under the current method of allocation. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Determine the unit product cost of each product for the current year. (Round your answers to 2 decimal places.) Unit Product Cost Product S Product W Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (Round your answer to 2 decimal places.) Unit Product Cost Product S Product W Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (Round your answer to 2 decimal places.) Unit Product Cost Product S Product W
Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (Round your answer to 2 decimal places.)
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