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. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ a. Compute overhead activity rates } \\ \hline Activity & \multicolumn{2}{|c|}{ Activity Rate } \\ \hline Machine setup & & per setup \\ \hline Parts handling & & per part \\ \hline Quality inspection & & per inspection \\ \hline \multicolumn{3}{|c|}{ b. Allocate overhead to Product A, B and compute overhead cost per unit } \\ \hline & \multicolumn{2}{|c|}{ Allocated Cost } \\ \hline Activity & Product A & Product B \\ \hline \multicolumn{3}{|l|}{ Machine setup } \\ \hline \multicolumn{3}{|l|}{ Parts handling } \\ \hline \multicolumn{3}{|l|}{ Quality inspection } \\ \hline \multicolumn{3}{|l|}{ Total allocated cost } \\ \hline \multicolumn{3}{|l|}{ Units produced } \\ \hline \multicolumn{3}{|l|}{ Overhead cost per unit } \\ \hline \multicolumn{3}{|c|}{ c. Product cost per unit using activity-based costing } \\ \hline Per Unit & \begin{tabular}{l} Product Cost per \\ Unit \end{tabular} & \\ \hline \multicolumn{2}{|l|}{ Product A } & \\ \hline Product B & & \\ \hline \end{tabular} 1. Using a plantwide overhead rate based on 4,500 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. Required 1 Required 2 Using a plantwide overhead rate based on 4,500 direct labor hours, compute the total product cost per unit for each product. \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Per Unit } & \begin{tabular}{c} Direct \\ Materials \end{tabular} & Direct Labor & Overhead & \begin{tabular}{c} Product Cost \\ per Unit \end{tabular} \\ \hline Product A & & & & \\ \hline Product B & & & & \\ \hline \end{tabular} 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. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ a. Compute overhead activity rates } \\ \hline Activity & \multicolumn{2}{|c|}{ Activity Rate } \\ \hline Machine setup & & per setup \\ \hline Parts handling & & per part \\ \hline Quality inspection & & per inspection \\ \hline \multicolumn{3}{|c|}{ b. Allocate overhead to Product A, B and compute overhead cost per unit } \\ \hline & \multicolumn{2}{|c|}{ Allocated Cost } \\ \hline Activity & Product A & Product B \\ \hline \multicolumn{3}{|l|}{ Machine setup } \\ \hline \multicolumn{3}{|l|}{ Parts handling } \\ \hline \multicolumn{3}{|l|}{ Quality inspection } \\ \hline \multicolumn{3}{|l|}{ Total allocated cost } \\ \hline \multicolumn{3}{|l|}{ Units produced } \\ \hline \multicolumn{3}{|l|}{ Overhead cost per unit } \\ \hline \multicolumn{3}{|c|}{ c. Product cost per unit using activity-based costing } \\ \hline Per Unit & \begin{tabular}{l} Product Cost per \\ Unit \end{tabular} & \\ \hline \multicolumn{2}{|l|}{ Product A } & \\ \hline Product B & & \\ \hline \end{tabular} 1. Using a plantwide overhead rate based on 4,500 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. Required 1 Required 2 Using a plantwide overhead rate based on 4,500 direct labor hours, compute the total product cost per unit for each product. \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Per Unit } & \begin{tabular}{c} Direct \\ Materials \end{tabular} & Direct Labor & Overhead & \begin{tabular}{c} Product Cost \\ per Unit \end{tabular} \\ \hline Product A & & & & \\ \hline Product B & & & & \\ \hline \end{tabular}