Cabio Company manufactures two products, Product C and Product D. The company estimated it would incur $198,910
Question:
a-1. Compute the predetermined overhead rate under the current method. (Round your answer to 2 decimal places.)
a-2. Determine the unit product cost of each product for the current year. (Round your intermediate calculations and final answers to 2 decimal places.)
b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Estimated Expected Activity Activity Cost Pools Overhead Cost Product C Product D Total Machine setups $ 14,290 320 330 650 Purchase orders 81,540 1,240 1,580 2,820 Order size 103,080 16,005 13,770 29,775 Total $ 198,910 Determine the unit product cost of each product for the current period using the activity-based costing approach. (Round your intermediate calculations and final answers to 2 decimal places.)
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer