In: Accounting
Plata Company produces two products: a mostly handcrafted soft
leather briefcase sold under the label Maletin...
Plata Company produces two products: a mostly handcrafted soft
leather briefcase sold under the label Maletin Elegant and a
leather briefcase produced largely through automation and sold
under the label Maletin Fina. The two products use two overhead
activities, with the following costs: Setting up equipment $ 6,000
Machining 19,000 The controller has collected the expected annual
prime costs for each briefcase, the machine hours, the setup hours,
and the expected production. Elegant Fina Direct labor $9,000
$3,000 Direct materials $3,000 $3,000 Units 3,000 3,000 Machine
hours 500 4,500 Setup hours 100 100 Required: 1. Conceptual
Connection: Do you think that the direct labor costs and direct
materials costs are accurately traced to each briefcase? Explain.
2. Calculate the consumption ratios for each activity. Round your
answers to one decimal place. Elegant Fina Machining Setups
Calculate the overhead cost per unit for each briefcase by using a
plantwide rate based on direct labor costs. Round to the nearest
cent. (Note: Do not round intermediate calculations.) Elegant $ per
briefcase Fina $ per briefcase ased on your calculations above
which of the following statements is correct? More machine and
setup costs are assigned to Elegant than Fina. T or F? Conceptual
Connection: Calculate the overhead cost per unit for each briefcase
by using overhead rates based on machine hours and setup hours.
Round your answers to the nearest cent. Elegant $ per unit Fina $
per unit