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 Budgeted Cost Activity Driver $ 17,000 (20 machine setupa) 13,600 (16,000 parts) 20,400 (100 inspections $ 51,000 Unit Information Product A Product 3 Units produced 1,700 units 340 units Direct materials coat $ 27 per unit $ 37 per unit Direct labor cost $ 47 per unit $ 57 per unit Direct labor hours 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 4,250 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 Setapa Parta Inspections Product 8 setupa 10,000 parts 40 inspections Products 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 4,250 direct labor hours, compute the total product cost per unit for each product. Direct Materials Direct Labor Product Cost Overhead per Unit Product A Per Unit Product B Required Required 2 > 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 Activity Activity Rate Machine setup per setup Parts handling per part Quality inspection per inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Allocated Cost Activity Product A Product B Machine setup Parts handling Quality inspection Total allocated cost Units produced Overhead cost per unit c. Product cost per unit using activity-based costing Product Cost per Per Unit Unit Product A Product B