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 | $ | ||
| | |||
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