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 Units produced Budgeted Cost Activity Driver $27,000 (20 machine setups) 21,600 (16,000 parts) 32,400 (100 inspections) $ 81,000 Product A 2,700 units Direct materials cost Direct labor cost $ 37 per unit $ 57 per unit 2 per unit Direct labor hours Product B) 540 units $ 47 per unit $ 67 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 6,750 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 Product A Product B Actual Activity Usage Setups Parts Inspections: Product A 8 setups 10,000 parts 40 inspections Product B 12 setups 6,000 parts 60 inspections Complete this question by entering your answers in the tabs below. Required 1 Required 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. (Round your final answers to 2 decimal places.) a. Compute overhead activity rates Machine setup Parts handling Quality inspection Activity Activity Rate per setup. per part per inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Show less Allocated Cost a. Compute overhead activity rates Machine setup Parts handling Activity Quality inspection Activity Rate per setup 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 $ 0 $ c. Product cost per unit using activity-based costing Per Unit Product A Product Cost per Unit Product B Required 1 Required 2. Actual Activity Usage Setups Parts Inspections Product A 8 setups) 10,000 parts 40 inspections Product B 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 6,750 direct labor hours, compute the total product cost per unit for each product. Per Unit Direct Materials Direct Labor Overhead Product Cost per Unit Product A Product B $ 37 $ 57 47 67