Refer to the data in QS4-4. Assume that the following information is available for the company€™s two products.

Required
1. Assign overhead costs to each product model using activity-based costing (ABC). What is the cost per unit of each model?
2. Assign overhead costs to each product model using the single plantwide overhead rate assuming the fast model requires 25,000 direct labor hours and the standard model requires 60,000 direct labor hours. What is the overhead cost per unit for eachmodel?

Transcribed Image Text:

Fast Model Standard Model 10,000 units 20,000 parts Production volume. Parts required Batches made Purchase orders . Invoices Space occupied . . Models . -_..- 30,000 units 30,000 parts 100 batches 20 orders 10 invoices 250 batches 50 orders . ..50 invoices 10,000 sq. ft. 7.000 sq. ft model I model