please do question no. 1,2 and 5 ASAP. and its based on functional based costing not activity based, i saw same question on chegg but all are answered in activity based costing. so please read and do questions with FBC.

QUESTION 2

ABC problem

Company LSD LTD has 4 types of overhead. The four categories and expected costs for each category for next year are listed below

Company LSD LTD

Activity cost

Setups cost

Inspection cost

Maintenance cost

Material Handling cost

Actual overhead Cost

$150,000

$90,000

$120,000

$82,000

$30,000

Estimates for the proposed job [Job # 23] are as follows

Direct Materials

DL (1000 hours)

Machine Hours [maintenance cost]

# of material moves

# of setups

# of inspections

Units produced

$6,000

$10,000

500

12

5

10

240

The company has been asked to submit a bid for a proposed job. The plant manager thinks getting this job would result in new business in future years. Usually bids are based upon full manufacturing cost plus 30%.

In the past, full manufacturing cost has been calculated by allocating overhead using volume based cost driver [[DLH]. The plant manager has heard of a new way of applying overhead that uses cost pools and cost drivers.

Expected activity for the four activity based cost drivers that would be used are:

Cost Drivers

Machine Hours

Material Moves

Setups

Quality Inspections

15,000

4,600

3,500

5,000

1. Calculate the predetermined rates using the Functional based costing

2. Determine the amount of overhead that would be applied to the proposed project if Functional based costing method is used

5. What bid price is the company going to use according to its FBC

policy?

Activity cost Setups cost Inspection cost Maintenance cost Material Handling cost Actual overhead Cost SUSO.000 590.000 $120,000 $2.000 50.000 Estimates for the proposed jobb 25 are as follows Direct Materials 56.000 DL (1000 hours 510.000 Machine Hours maintenance cost 500 of material moves Fof setups 5 of inspection 30 Units produced 240 The company has been asked to submit a bid for a proposed job. The plant manager thinks getting this job would new business in future years. Usually bids are based upon fullmachting costs 30% In the past, full manufacturing cost has been calitated by allocating overhead using volume based cost driver. The plant manager has heard of a new way of applying overhead that uses cost pools and cost drivers Expected activity for the four activity based codes that would be used are: Cost Drivers Machine Hours 35 000 Material Moves 100 Setups 3.500 Quality inspections 5.000 Required: Part 1 1. Calculate the predetermined rates in the Functional based costing 2 Determine the amount of overed that would be oplied to the proposed project if Functional based conting method is used Determine the total cost of the proceeding ABC 4. Calculate the unit cout using Fac 5. What bid price is the companying to according to its FBC policy Part 2