Exercise 4-11 (Algo) Computing product cost per unit using plantwide method and activity-based costing LO P1, P3 Consider the following data for two products of Vigano Manufacturing. Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Budgeted Cost Activity Driver $ 16,000 (20 machine setups) 12,800 (16,000 parts) 19,200 (100 inspections) $ 48,000 Product A 1,600 units Product B 320 units $ 36 per unit Units produced Direct materials cost $26 per unit $ 46 per unit 2 per unit $ 56 per unit 2.50 per unit Direct labor cost Direct labor hours 1. Using a plantwide overhead rate based on 4,000 direct labor hours, compute the total product cost per unit for each product 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost. (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Actual Activity Usage Setups Parts Inspections Product A 8 setups 10,000 parts 40 inspections Product B 12 setups 6,000 parts 60 inspections < Prev 1 of 1 Next > eden, and (c) compute product cost per unit for each. Actual Activity Usage Setups Parts Inspections Product A 8 setups 10,000 parts 40 inspections Product Bi 12 setups 6,000 parts 60 inspections Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using a plantwide overhead rate based on 4,000 direct labor hours, compute the total product cost per unit for each product. Per Unit Product A Product B Direct Materials Direct Labor Overhead Product Cost per Unit < Prax 1 of 1 Next > cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. (Round your final answers to 2 decimal places.) Show less A a. Compute overhead activity rates Activity Machine setup Parts handling Activity Rate per setup Quality inspection per part per inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Activity Machine setup Parts handling Quality inspection Total allocated cost Units produced Overhead cost per unit Allocated Cost Product A Product B c. Product cost per unit using activity based costing Per Unit Product A Product B Product Cost per Uniti Prev 1 of 1 Next