Novak Corp. has been making and selling a variety of tabletops for many years. L'Adell, product...

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Novak Corp. has been making and selling a variety of tabletops for many years. L'Adell, product manager for two versions of the company's tabletop products, Marbled and Solid, was comparing sales volumes for these two types of products. While she knew Novak's sales for the Solid tops had been declining, she was surprised to see the competitors' tabletop sales had been increasing. Was there something she didn't understand about her products' costs? Novak Corp. had always allocated MOH costs to its products using one cost driver: units produced. It made sense, as both products were of comparable size and went through the same process-though they did take different amounts of time in each area. She looked closely at the key activities and likely cost drivers and gathered the following information. Quantity of Cost Driver Activity Budgeted cost Cost Driver Marbled Solid Machining $159,600 Machine hours 2,400 3,300 Assembly 272,800 Direct labor hours 15,700 9,100 Quality control 75,600 Quality control hours 700 350 Total $508,000 Units produced 800 1,700 (a) Your answer is correct. Calculate the plant-wide MOH rate if Novak continues to use units produced as its only allocation base. Calculate the MOH costs per unit for each product: Marbled and Solid. (Round answer to 2 decimal places, e.g. 15.25.) Plant-wide MOH rate $ 203.20 unit produced (b) Calculate activity rates for MOH if Novak uses the three key activities, along with each unique cost driver, as noted above. Key Activity Machining $ Activity-based Rate per machine hour Assembly Quality Control per labor hour per quality control hour Calculate the MOH costs per unit for each product: Marbled and Solid. (Round answers to 2 decimal places, e.g. 15.25.) Key Activity Marbled Solid MOH per unit $ $ Novak Corp. has been making and selling a variety of tabletops for many years. L'Adell, product manager for two versions of the company's tabletop products, Marbled and Solid, was comparing sales volumes for these two types of products. While she knew Novak's sales for the Solid tops had been declining, she was surprised to see the competitors' tabletop sales had been increasing. Was there something she didn't understand about her products' costs? Novak Corp. had always allocated MOH costs to its products using one cost driver: units produced. It made sense, as both products were of comparable size and went through the same process-though they did take different amounts of time in each area. She looked closely at the key activities and likely cost drivers and gathered the following information. Quantity of Cost Driver Activity Budgeted cost Cost Driver Marbled Solid Machining $159,600 Machine hours 2,400 3,300 Assembly 272,800 Direct labor hours 15,700 9,100 Quality control 75,600 Quality control hours 700 350 Total $508,000 Units produced 800 1,700 (a) Your answer is correct. Calculate the plant-wide MOH rate if Novak continues to use units produced as its only allocation base. Calculate the MOH costs per unit for each product: Marbled and Solid. (Round answer to 2 decimal places, e.g. 15.25.) Plant-wide MOH rate $ 203.20 unit produced (b) Calculate activity rates for MOH if Novak uses the three key activities, along with each unique cost driver, as noted above. Key Activity Machining $ Activity-based Rate per machine hour Assembly Quality Control per labor hour per quality control hour Calculate the MOH costs per unit for each product: Marbled and Solid. (Round answers to 2 decimal places, e.g. 15.25.) Key Activity Marbled Solid MOH per unit $ $