3 D bints 03 03:43:36 Print Fisher Fixtures manufactures three types of lighting fixtures, with model...

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3 D bints 03 03:43:36 Print Fisher Fixtures manufactures three types of lighting fixtures, with model names of Silver, Gold, and Platinum. It applies all indirect costs according to an annual predetermined rate based on direct labor-hours. The plant controller has recommended that the company switch to an activity-based costing system. The controller's staff prepared the following cost estimates for next year (year 2) for the recommended cost drivers. Activity Purchasing material Receiving material Setting up equipment Machine depreciation and maintenance Ensuring regulatory compliance Shipping Total estimated cost Recommended Cost Driver Number of purchase orders Direct materials cost Number of production runs Machine hours Number of inspections i Number of units shipped In addition, management estimated 45,000 direct labor-hours for year 2. Assume that the following cost-driver volumes occurred in January, year 2: Number of units produced. Estimated Cost $135,000 244,800 238,050 82,620 469,800 1,101,600 $ 2,272,500 Estimated Cost Driver Activity 240 purchase orders $ 3,060,000 120 runs 16,524 hours 54 inspections 612,000 units Direct labor-hours Number of purchase orders Direct materials costs. Number of production runs Machine-hours Number of inspections: Units shipped Silver 32,000 2,000 Gold 10,000 1,200 Platinum 3,000 400 7 6 3 $ 97,500 $ 60,000 $37,500 2 3 700 175 100 2 32,000 10,000 3,000 Labor costs are based on the contractual rate of $25 per hour. Required: 03:43:12 Print Labor costs are based on the contractual rate of $25 per hour. Required: a. Compute the predetermined rate for year 2 for use in the current product-costing system using direct labor-hours as the allocation base. b. Compute the per-unit production costs for each model for January using direct labor-hours as the allocation base and the predetermined rate computed in requirement (a). c. Compute the predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the controller's staff to be used in an ABC system. d. Compute the per unit production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement (c). (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Compute the per unit production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement (c). (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) Note: Round your intermediate and final answers to nearest whole dollars. Round unit cost answer to two decimal places. Show less a 10 points 03:43:00 Print Mc Required A Required B Required C Required D Compute the per unit production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement (c). (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) Note: Round your intermediate and final answers to nearest whole dollars. Round unit cost answer to two decimal places. Account Silver Gold Platinum Total $ 97,500 $ 60,000 $ 37,500 $ 195,000 0 Direct materials Direct labor Indirect costs Purchasing material Receiving material Setting up equipment Machine maintenance Ensuring compliance 0 0 0 0 0 Shipping 0 Total indirect costs $ Total cost $ 76,823 $ 97,500 $ 50,417 $ 60,000 $ 46,615 37,500 $ $ 173,855 195,000 Units produced Unit cost (rounded) 3 D bints 03 03:43:36 Print Fisher Fixtures manufactures three types of lighting fixtures, with model names of Silver, Gold, and Platinum. It applies all indirect costs according to an annual predetermined rate based on direct labor-hours. The plant controller has recommended that the company switch to an activity-based costing system. The controller's staff prepared the following cost estimates for next year (year 2) for the recommended cost drivers. Activity Purchasing material Receiving material Setting up equipment Machine depreciation and maintenance Ensuring regulatory compliance Shipping Total estimated cost Recommended Cost Driver Number of purchase orders Direct materials cost Number of production runs Machine hours Number of inspections i Number of units shipped In addition, management estimated 45,000 direct labor-hours for year 2. Assume that the following cost-driver volumes occurred in January, year 2: Number of units produced. Estimated Cost $135,000 244,800 238,050 82,620 469,800 1,101,600 $ 2,272,500 Estimated Cost Driver Activity 240 purchase orders $ 3,060,000 120 runs 16,524 hours 54 inspections 612,000 units Direct labor-hours Number of purchase orders Direct materials costs. Number of production runs Machine-hours Number of inspections: Units shipped Silver 32,000 2,000 Gold 10,000 1,200 Platinum 3,000 400 7 6 3 $ 97,500 $ 60,000 $37,500 2 3 700 175 100 2 32,000 10,000 3,000 Labor costs are based on the contractual rate of $25 per hour. Required: 03:43:12 Print Labor costs are based on the contractual rate of $25 per hour. Required: a. Compute the predetermined rate for year 2 for use in the current product-costing system using direct labor-hours as the allocation base. b. Compute the per-unit production costs for each model for January using direct labor-hours as the allocation base and the predetermined rate computed in requirement (a). c. Compute the predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the controller's staff to be used in an ABC system. d. Compute the per unit production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement (c). (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Compute the per unit production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement (c). (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) Note: Round your intermediate and final answers to nearest whole dollars. Round unit cost answer to two decimal places. Show less a 10 points 03:43:00 Print Mc Required A Required B Required C Required D Compute the per unit production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement (c). (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) Note: Round your intermediate and final answers to nearest whole dollars. Round unit cost answer to two decimal places. Account Silver Gold Platinum Total $ 97,500 $ 60,000 $ 37,500 $ 195,000 0 Direct materials Direct labor Indirect costs Purchasing material Receiving material Setting up equipment Machine maintenance Ensuring compliance 0 0 0 0 0 Shipping 0 Total indirect costs $ Total cost $ 76,823 $ 97,500 $ 50,417 $ 60,000 $ 46,615 37,500 $ $ 173,855 195,000 Units produced Unit cost (rounded)