The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead...

 

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The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Cost Pool (and Activity Measure) Machining (machine-hours) Manufacturing Overhead $ 195,600 EX300 97,000 Activity TX500 Setups (setup hours) Product-level (number of products) 225,600 156,620 110 1 66,000 370 1 Total 163,000 480 2 General factory (direct labor dollars) 79,580 $ 127,000 $ 46,000 $ 173,000 Total manufacturing overhead cost $ 657,400 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Cost Pool (and Activity Measure) Machining (machine-hours) Manufacturing Overhead $ 195,600 EX300 97,000 Activity TX500 Setups (setup hours) Product-level (number of products) 225,600 156,620 110 1 66,000 370 1 Total 163,000 480 2 General factory (direct labor dollars) 79,580 $ 127,000 $ 46,000 $ 173,000 Total manufacturing overhead cost $ 657,400 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product.