Reschman Co. manufactures two products. Following is a production and cost analysis for each product for 2013:

Elysia Sanderson, the firm€™s cost accountant, has just returned from a seminar on activity-based costing. To apply the concepts she learned, she decides to analyze the costs incurred for Products A and B on an activity basis. In doing so, she specifies the following first and second allocation processes:

a. Determine the total overhead for Reschman Co.
b. Determine the plantwide overhead rate for the company, assuming the use of direct labor hours.
c. Determine the cost per unit of Product A and Product B, using the overhead rate found in (b).
d. Determine the cost allocations to departments (first-stage allocations). Allocate costs from the departments in the following order: building occupancy, purchasing, and power. Finish the cost allocations for one department to get an €œadjusted€ cost to allocate to the next department.
e. Using the allocations found in (d), determine the cost allocations to products (second-stage allocations).
f. Determine the cost per unit of Product A and Product B using the overhead allocations found in(e).

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ProductA Product B Both Products 00,000 800,000 100,000 200,000 2 25,000 S 375,000 Machine operations 10,000 200,000 operations 0 15,000 400,000 25,000 800,000 1,500,000 8,500,000 Number of purchase orders Square feet occupied 10,000 2 200,000 250,000 FIRST STAGE: ALLOCATIONS TO DEPARTMENTS Activity Allocation Base Kilowatt hours Number of purchase orders Square feet occupied Cost Pool Cost Object Power Purchasing Building occupancy Departments Material Departments SECOND STAGE: ALLOCATIONS TO PRODUCTS Cost Pool Cost Object Activity Allocation Base Departments Indirect labor Power Machinery related Building occupancy Material purchasing Product Products Products Products Products Hours worked Machine hours Machine hours Machine hours Materials used