Activity Based Costing Nerdzy has also considered restructuring the manufacturing plant to produce batches of products to Increase efficiency. They would like you to analyze what the impact would be on the cost of each product if they switch to an activity-based production and accounting method. Setup Production Testing Packaging Allocation Base # of batches Machine Hrs # of Tests # of Batches Estimated MOH Costs 22019.44 159640.94 55048.6 38534.02 275243 Activity Setup Production 3 Testing Packaging Allocation Base # of batches Machine Hrs # of Tests # of Batches Standard Premium Standard Premium Desktop Desktop Laptop Laptop 65 52 71 50 8231 2844 18221 166455 28 18 19 38 51 67 25 45 Total 238 195751 103 188 6 7 8 9 **Note, the number of units per product item can be found in the previous problem information. You 20 will need this for part b. 31 32 33 **Note, the DM & DL costs per product can also be found in the previous problem information, which 34 you will need for part c. 35 36 37 Requirements: 38 3.a Compute the predetermined overhead allocation rate (POAR) for each activity. 39 3.b Allocate overhead costs to the different products based on the activities required. 40 3.c Calculate the total production cost of each product. 41 3.a Compute the predetermined overhead allocation rate (POAR) for each activity: Setup Production Testing Packaging per per per per 3.b Allocate overhead costs to the different products based on the activities required. X Qty of base= Allocated MOH POAR Standard Desktop Setup Production Testing Packaging Total Manufacuring Overhead + # of units Qty of base= Allocated MOH 238 MOH cost per unit 5751 103 188 POAR X Premium Desktop Setup Production Testing n. You Packaging Total Manufacuring Overhead +# of units MOH cost per unit which Qty of base- Allocated MOH POAR X Standard Laptop Setup Production Testing Packaging Total Manufacuring Overhead +# of units MOH cost per unit Qty of base=Allocated MOH CL POAR X Standard Laptop Setup Production Testing Packaging Total Manufacuring Overhead + # of units MOH cost per unit Qty of base= Allocated MOH POAR X Premium Laptop Setup Production Testing Packaging Total Manufacuring Overhead + # of units MOH cost per unit 3.c Calculate the total production cost of each product Standard Desktop Premium Desktop Standard Laptop Premium Laptop Total Cost Per Unit Activity Based Costing Nerdzy has also considered restructuring the manufacturing plant to produce batches of products to Increase efficiency. They would like you to analyze what the impact would be on the cost of each product if they switch to an activity-based production and accounting method. Setup Production Testing Packaging Allocation Base # of batches Machine Hrs # of Tests # of Batches Estimated MOH Costs 22019.44 159640.94 55048.6 38534.02 275243 Activity Setup Production 3 Testing Packaging Allocation Base # of batches Machine Hrs # of Tests # of Batches Standard Premium Standard Premium Desktop Desktop Laptop Laptop 65 52 71 50 8231 2844 18221 166455 28 18 19 38 51 67 25 45 Total 238 195751 103 188 6 7 8 9 **Note, the number of units per product item can be found in the previous problem information. You 20 will need this for part b. 31 32 33 **Note, the DM & DL costs per product can also be found in the previous problem information, which 34 you will need for part c. 35 36 37 Requirements: 38 3.a Compute the predetermined overhead allocation rate (POAR) for each activity. 39 3.b Allocate overhead costs to the different products based on the activities required. 40 3.c Calculate the total production cost of each product. 41 3.a Compute the predetermined overhead allocation rate (POAR) for each activity: Setup Production Testing Packaging per per per per 3.b Allocate overhead costs to the different products based on the activities required. X Qty of base= Allocated MOH POAR Standard Desktop Setup Production Testing Packaging Total Manufacuring Overhead + # of units Qty of base= Allocated MOH 238 MOH cost per unit 5751 103 188 POAR X Premium Desktop Setup Production Testing n. You Packaging Total Manufacuring Overhead +# of units MOH cost per unit which Qty of base- Allocated MOH POAR X Standard Laptop Setup Production Testing Packaging Total Manufacuring Overhead +# of units MOH cost per unit Qty of base=Allocated MOH CL POAR X Standard Laptop Setup Production Testing Packaging Total Manufacuring Overhead + # of units MOH cost per unit Qty of base= Allocated MOH POAR X Premium Laptop Setup Production Testing Packaging Total Manufacuring Overhead + # of units MOH cost per unit 3.c Calculate the total production cost of each product Standard Desktop Premium Desktop Standard Laptop Premium Laptop Total Cost Per Unit