TranscribedText: Shalom Company manufactures two products: Wool and Cotton. During the year, it produced 50 1I-'ii'ool and 100 Cotton products and incurred estimated overhead costs of P189300. An analysis of estimated overhead costs reveals the following activities: Activities Cost Drivers Total Cost [1} Material handling Number of requisitions 30.000 {2} Machine set-ups Number of set-ups 55,000 [3} Quality Inspections Number of inspectlons 54,000 Cost drivers Wool Cotton Material handling 600 400 Machine set-ups 200 300 Quality inspections 350 150 Costs Direct materials 39,200 64,300 Direct labor 63,000 411,500 Amounts must be in whole numbers. Example: 33,000 or (33,000,! Unit trusts be in whole numbers. Example: 88 Format of percentages: 3395 Words must be in capital letters. 1. What is the total oust per unit of Wool? 2. What is the total cost per unit of Cotton? Shalom Company.r uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows: product design P411000; machining P300000; and material handling P100300. The cost drivers and estimated use are as follows: Estimated Use of Cost Driver Activity Cost Pools Activities Per Activity Product design Number of product changes 10 Machining Machine hours 150,000 Material handling Number of set-ups 100 Am aunts must be in whole numbers. Example: 83,000 or (33,000} Unit costs be in whole numbers. Example: 38 Format of percentages: 38% Words must be in capital letters. What is the activitybased overhead rate for material handling? C]

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Activities (1) Material handling (2) Machine set-ups (3) Quality inspections Shalom Company manufactures two products: Wool and Cotton. During the year, it produced 50 Wool and 100 Cotton products and incurred estimated overhead costs of P189,000. An analysis of estimated overhead costs reveals the following activities: Cost Drivers Number of requisitions Total Cost 80,000 Number of set-ups Number of inspections 55,000 54,000 Cost drivers Wool Cotton Material handling 600 400 Machine set-ups 200 300 Quality inspections 350 150 Costs Direct materials 89,200 64,300 Direct labor 63,000 44,500 Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. 1. What is the total cost per unit of Wool? 2. What is the total cost per unit of Cotton? Item 1 Item 2 Activities (1) Material handling (2) Machine set-ups (3) Quality inspections Shalom Company manufactures two products: Wool and Cotton. During the year, it produced 50 Wool and 100 Cotton products and incurred estimated overhead costs of P189,000. An analysis of estimated overhead costs reveals the following activities: Cost Drivers Number of requisitions Total Cost 80,000 Number of set-ups Number of inspections 55,000 54,000 Cost drivers Wool Cotton Material handling 600 400 Machine set-ups 200 300 Quality inspections 350 150 Costs Direct materials 89,200 64,300 Direct labor 63,000 44,500 Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. 1. What is the total cost per unit of Wool? 2. What is the total cost per unit of Cotton? Item 1 Item 2