Robbie's Robotics manufactures laptops and tablets. Robbie has established the following cost pools and cost drivers....

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Robbie's Robotics manufactures laptops and tablets. Robbie has established the following cost pools and cost drivers. The following data regarding the two products is given below. Product Laptops Tablets Machine Hours 3 direct labor hours/unit 2 direct labor hours/unit Annual Production 14,000 units 4,000 units Total D/L Hours 42,000 DLHS 8,000 DLHS 50,000 DLHS The company's direct labor rate has always used direct labor hours to apply overhead, and their direct labor rate is $12 per hour. Laptops require $120 in direct materials per unit, while tablets require $160. Cost Pool Machine Set-ups Material Handling Quality Control General Factory Activity Measure Number of Setups Raw Material Weight Number of Inspections Direct Labor Hours Activity Measure Number of Setups Pounds of Raw Material Number of Inspections Direct Labor Hours Total Cost $900,000 600,000 250,000 1,250,000 $3,000,000 -Expected Activity Laptops 100 Tablets Total 200 300 6,000 2,000 8,000 100 42,000 150 8,000 250 50,000 1) Assume that the company uses direct labor hours to apply overhead. a) Calculate the predetermined overhead rate. b) Calculate the unit cost of each product. 2) Assume that the company decides to use activity-based costing to apply overhead cost to products. a) Compute that activity rate of each activity cost pool b) Compute the unit cost of each model. Robbie's Robotics manufactures laptops and tablets. Robbie has established the following cost pools and cost drivers. The following data regarding the two products is given below. Product Laptops Tablets Machine Hours 3 direct labor hours/unit 2 direct labor hours/unit Annual Production 14,000 units 4,000 units Total D/L Hours 42,000 DLHS 8,000 DLHS 50,000 DLHS The company's direct labor rate has always used direct labor hours to apply overhead, and their direct labor rate is $12 per hour. Laptops require $120 in direct materials per unit, while tablets require $160. Cost Pool Machine Set-ups Material Handling Quality Control General Factory Activity Measure Number of Setups Raw Material Weight Number of Inspections Direct Labor Hours Activity Measure Number of Setups Pounds of Raw Material Number of Inspections Direct Labor Hours Total Cost $900,000 600,000 250,000 1,250,000 $3,000,000 -Expected Activity Laptops 100 Tablets Total 200 300 6,000 2,000 8,000 100 42,000 150 8,000 250 50,000 1) Assume that the company uses direct labor hours to apply overhead. a) Calculate the predetermined overhead rate. b) Calculate the unit cost of each product. 2) Assume that the company decides to use activity-based costing to apply overhead cost to products. a) Compute that activity rate of each activity cost pool b) Compute the unit cost of each model.

Answer rating: 100% (QA)

1a Calculate the predetermined overhead rate using direct labor hours Predetermined Overhead Rate Total Manufacturing Overhead Cost Total Direct Labor ... View the full answer