Question: help with section 4 please show work Landon Company makes two models of children's playhouses, the Castle and the Mansion. Basic production information follows: Castle

help with section 4 please show work Landon Company makes two models of children's playhouses, the Castle and the Mansion.
Basic production information follows:

Castle Mansion
Direct materials cost per unit $ 35 $ 63
Direct labor cost per unit 21 36
Sales price per unit 357 572
Expected production per month 760 units 420 units

Landon has monthly overhead of $194,915, which is divided into the following cost pools:

Setup costs $ 83,300
Quality control 67,415
Maintenance 44,200


Total $ 194,915





The company has also compiled the following information about the chosen cost drivers:

Castle Mansion Total
Number of setups 35 63 98
Number of inspections 320 375 695
Number of machine hours 1,100 1,500 2,600

Overhead assigned
Castle Model: $
Mansion Model: $


Total Overhead Cost $





Castle Mansion
Unit cost $ $

Castle Mansion
Gross margin $ $

Requirement 4:

Select the appropriate cost driver for each cost pool and calculate the activity rates if Landon wanted to implement an ABC system. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Setup Costs $
Quality Control $
Maintenance $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

\f