Question: Help with 2(A) & 2(B) Chrom Co. manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants


Chrom Co. manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis Estimated Overhead Costs by Estimated Direct Labor Hours & Department Machine Hours by Department 150,000 vs $3,000,000 100,000 125,000 hrs 100,000 hrs Finishing 70,000 75,000 hrs Assembly Total: $8,000,000 Asser 50,000 hrs ces Assembly 25,000 hrs Finishing Finishing $5,000,000 30,000 25,000 Hors Machine Hours Estimated Overhead Costs by Cost Driver & Expected Usage Activity by Activity Supervision Supervision 125,000 Maintenance 2,000,000 Total: $8,000,000 6,000,000 100,000 Note: Total overhead costs by department and total overhead costs by activity are equal. The co are presented in two different ways here. + ableau equal. The costs are presented in two different ways here. +ableau T Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. The company's XL model requires 2 direct labor hours and 1 machine hour The RD model requires 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 Compute the overhead cost per unit of each model using ABC. XL RD Activity Activity Rate Activity Driver Incurred Overhead Assigned Activity Driver incurred Overhead Assigned Maintenance MH per MH per DLH MH DLH DLH Supervision Overhead Cost Per Unit $ S KURA Required 28 > Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. Derences +ableau Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. The company's XL model requires 2 direct labor hours and 1 machine hour. The RD model requires 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Required 3 Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. Model Activity Driver Plantwide OH Rate OH Cost Per Unit XL RD DLH DLH
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