# Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and the N 500 model....

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## Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow: Model N 800 XL Model N 500 Direct Labor- Hours per Unit 2.5 1.3 Activity Cost Pool Machine setups Special processing General factory Annual Production 3,500 units 12,500 units Total Direct Labor-Hours Additional information about the company follows: a. Model N 800 XL requires $65 in direct materials per unit, and Model N 500 requires $25. b. The direct labor wage rate is $16 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment. Consequently, the company is considering the use of activity-based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Activity Measure Number of setups Machine-hours Direct labor-hours 8,750 16,250 25,000 Estimated Overhead Cost $ 510,000 230,000 1,410,000 $ 2,150,000 Activity Measure Number of setups Machine-hours Direct labor-hours Req 1A Model N 800 XL 200 20,000 8,750 Complete this question by entering your answers in the tabs below. Required: 1. Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. a. Compute the predetermined overhead rate. b. Compute the unit product cost of each model. Req 1B Model N 800 XL Model N 500 Expected Activity Model N 500 300 0 16,250 < Req 1A Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the unit product cost of each model. (Round your answers to 2 decimal places.) Total 500 Req 1B 20,000 25,000 > 8 Part 2 of 2 10 points Skipped cBook Print References Required information [The following information applies to the questions displayed below.] Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow: Model N 800 XL Model N 500 Direct Labor- Hours per Unit 2.5 1.3 Activity Cost Pool Machine setups Special processing General factory Annual Production 3,500 units 12,500 units Total Direct Labor-Hours Additional information about the company follows: a. Model N 800 XL requires $65 in direct materials per unit, and Model N 500 requires $25. b. The direct labor wage rate is $16 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment. Consequently, the company is considering the use of activity-based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Activity Measure Number of setups Machine-hours Direct labor-hours 8,750 16,250 25,000 Estimated Overhead Cost $ 510,000 230,000 1,410,000 $ 2,150,000 Check my work 8 Part 2 of 2 10 points Skipped eBook Print References Activity Measure Number of setups Machine-hours. Direct labor-hours Req 2A1 Model N 800 XL 200 20,000 8,750 Complete this question by entering your answers in the tabs below. Req 2A2 Machine setup Special processing General factory 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. a(1). Compute the activity rate for each activity cost pool. a(2). Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system. b. Compute the unit product cost of each model. Req 2B Expected Activity Model N 500 300 0 16,250 per setup per MH per DLH < Req 2A1 Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Total 500 20,000 25,000 Req 2A2 > 8 II Part 2 of 2 10 points Skipped eBook Print References Activity Measure Number of setups Machine-hours Direct labor-hours Req 2A1 Model N 800 XL 200 Reg 2A2 20,000 8,750 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. a(1). Compute the activity rate for each activity cost pool. Complete this question by entering your answers in the tabs below. Req 2B Overhead cost per unit a(2). Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system. b. Compute the unit product cost of each model. Expected Activity Model N 500 300 0 16,250 Model 800 XL Model N 500 < Req 2A1 Total 500 Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system. (Round your intermediate calculations and final answers to 2 decimal places.) 20,000 25,000 Req 2B > 8 Part 2 of 2 10 points Skipped eBook Print References Activity Measure Number of setups. Machine-hours Direct labor-hours. Req 2A1 Model N 800 XL 200 20,000 8,750 Req 2A2 Unit product cost 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. a(1). Compute the activity rate for each activity cost pool. Complete this question by entering your answers in the tabs below. Req 2B Expected Activity a(2). Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system. b. Compute the unit product cost of each model. Model N 500 300 0 16,250 < Req 2A2 Total 500 20,000 25,000 Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Compute the unit product cost of each model. (Round your intermediate calculations and final answers to 2 decimal places.) Model N 800 XL Model N 500 Req 2B >

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## Req 1A Compute the Predetermined Overhead Rate The predetermined overhead rate is calculated by divi View the full answer

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## Introduction to Managerial Accounting

ISBN: 978-0078025792

7th edition

Authors: Peter Brewer, Ray Garrison, Eric Noreen

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