Question: 56. please complete correctly and i will give a thumbs up. Northwest Company produces two types of glass shelving: rounded edge and squared edge. The
Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following con data. Rounded Edge Squared Edge Direet materials Total $ 38,400 Direct labor $ 50,400 12,800 $ 88,800 33,600 Overhead (uning plantwide rate) 46,400 45,000 85,400 130.400 Total product cost $ 96,200 $ 169.400 $ 265,600 Units produced 12,800 16,000 Product cost per unit $ 7.52 9. 10.00 Northwest's controller wants to apply activity based costing to allocate the $130,400 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected Letivity Unge Total Rounded Edge Budgeted cost Activity Cost Driver Soared de Activity 179 orders 501 orders 680 orders $ 6,800 Purchase orders Purchasing 500 hours 1.500 hours 2,000 hours Machine bours 67,800 Depreciation of machinery 10 stops 210 setup 250 beton 55,800 Setup Setup Total $ 130, 400 Required: 1. Compute the activity rate for each activity using activity-based costing. 2. Compute overhead cost per unit for each of the two products using activity based costing 3. Determine product cost per unit for each of the two products using activity-based costing
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