Question: Model A Model B Direct materials 5643,000 $757.000 Direct labor $454,000 $450,000 Units completed 16,500 8.900 Direct labor hours 5.600 1.800 Number of setups 450
Model A Model B Direct materials 5643,000 $757.000 Direct labor $454,000 $450,000 Units completed 16,500 8.900 Direct labor hours 5.600 1.800 Number of setups 450 200 Number of orders 6.300 12.700 Machine hours 17.100 Receiving hours 3.200 7.000 The company's normal activity is 7,400 direct labor hours, Required: 1. Determine the unit cont for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cont Unit Cost 24.300 Model A x Model B x 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cant Unit Cost Model A Model B 3. Which method produces the more accurate cost assignment? Direct materials $643,000 $757,000 Direct labor $454,000 $458.000 Units completed 16,500 8,900 Direct labor hours 5,600 1,800 Number of setups 450 200 Number of orders 6.300 12,700 Machine hours 24,300 17.100 Receiving hours 3,200 7.000 The company's normal activity is 7,400 direct labor hours. Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round Intermediate calculations and final answers to nearest cent. Unit Cost Model A Model B 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A Model B Model A Model B Direct materials 5643,000 $757.000 Direct labor $454,000 $450,000 Units completed 16,500 8.900 Direct labor hours 5.600 1.800 Number of setups 450 200 Number of orders 6.300 12.700 Machine hours 17.100 Receiving hours 3.200 7.000 The company's normal activity is 7,400 direct labor hours, Required: 1. Determine the unit cont for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cont Unit Cost 24.300 Model A x Model B x 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cant Unit Cost Model A Model B 3. Which method produces the more accurate cost assignment? Direct materials $643,000 $757,000 Direct labor $454,000 $458.000 Units completed 16,500 8,900 Direct labor hours 5,600 1,800 Number of setups 450 200 Number of orders 6.300 12,700 Machine hours 24,300 17.100 Receiving hours 3,200 7.000 The company's normal activity is 7,400 direct labor hours. Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Round Intermediate calculations and final answers to nearest cent. Unit Cost Model A Model B 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A Model B
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