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Activity-Based Costing slack Corporation has the following predicted indirect costs and cost drivers for 2016 for the given activity cost pools: Fabrication Department $65,000 30,000 70,000 Finishing Department Cost Driver Maintenance Materials handling Machine setups Inspections $55,000 Machine hours 15,000 Material moves 5,000 Machine setups 25,000 Inspection hours $165,000 $100,000 The following activity predictions were also made for the year: Fabrication Department 10,000 3,000 700 Finishing Department 5,000 1,500 50 1,000 Machine hours Material moves Machine setups Inspection hours It is assumed that the cost per unit of activity for a given activity does not vary between departments. Slack's president, Charles Slack, is trying to evaluate the company's product mix strategy regarding two of its five product models, ZX300 and SL500. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates or activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models ZX300 SL500 Direct materials cost $17,000 $23,000 $5,000 $4,000 Machine hours (Fabrication) 500 700 Machine hours (Finishing) 200 100 30 50 Direct labor cost Materials moves Machine setups Inspection hours 30 60 a. Determine the cost of one unit each of Zx300 and SL500, assuming a company-wide overhead rate is used based on total machine hours. Round rate to two decimal places. overhead rate based on total machine hours 17.67 per machine hour Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places. Product Costs per Unit SL500 17,00023,000 ,000 ZX300 Direct meterials Direct labor 5,000 ZX300 SL500 23,000 5,000 4,000 Direct materials 17,000 Direct labor Manufacturing overhead 12,369 883.5 x Total cost per batch 34,369 100 s343.69 14136x Number of units per batch 100 Cost per unit 279 X b.Determine the cost of one unit of ZX300 and SL500, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments. Round rate to two decimal places, if applicable. Overhead rate based on machine hours for Fabrication Dept. $ hour 0 x per machine rate based on machine hours for Finishing Dept. s per machine hour Use rounded overhead rate calculated above for calculations be the nearest who needed low. Round cost answers to le number, when needed. Round cost per unit to two decimal places, if Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed Product Costs per Unit Product Costs per Unit ZX300 SL500 Direct materials Direct labor Manufacturing overhead: Fabrication Dept Finishing Dept o x Total cost per batch Number of units per batch Cost per unit c. Determine the cost of one unit of ZX300 and SL500, assuming activity-based overhead rates are used for maintenance, materials handling, machine setup, and inspection activities. Round rate to two decimal places, if applicable. Activity-based overhead rates: Maintenance 0 X per machine hour Materials handling 0 per materials move Machine setup 0 X per machine setup It Inspection activities 0 X per inspection hour Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed. Product Costs per Unit ZX300 SL500 Direct materials Direct labor Manufacturing overhead Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed. Product Costs per Unit ZX300 SL500 Direct materials Direct labor 0 Manufacturing overhead: Maintenance activity o Xx Materials handling activity Machine setups activity Inspections activity Toral cost per batch Number of units per batch ox Cost per unit