Sandstorm Manufacturing Inc. makes two types of industrial component parts-the LE100 and the UL600. It annually...

  

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Sandstorm Manufacturing Inc. makes two types of industrial component parts-the LE100 and the UL600. It annually produces 120,000 units of LE100 and 25,000 units of UL600. The company's conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: LE100 UL600 720,000 Total 1,077,000 Direct materials $ $357,000 $ 240,000 Direct labor $ $100,000 $ 340,000 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Activity Manufacturing Overhead LE100 UL600 Total 36,000 $ 400,000 135,000 171,000 300,000 150 600 750 200,500 2 2 4 120,000 $ 240,00 0 $100,000 $340,000 Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost $ 1,020,500 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. (Round your final answer to 2 decimal places.) Predetermined overhead rate $ per DLS 1-b. Using the plantwide rate, compute the unit product cost for each product. (Round intermediate calculations and final answers to 2 decimal places.) Unit product cost LE100 UL600 $ $ 2-a. Compute the activity rate for each activity cost pool. (Round your final answers to 2 decimal places.) Activity Cost Pools Machining Setups General factory Product-level Activity Rate $ per MH $ per setup hr. $ per product $ per DL$ 2-b. Using the activity rates, compute the unit product cost for each product. (Round intermediate calculations and final answers to 2 decimal places.) Unit product cost LE100 UL600 $ $ Sandstorm Manufacturing Inc. makes two types of industrial component parts-the LE100 and the UL600. It annually produces 120,000 units of LE100 and 25,000 units of UL600. The company's conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: LE100 UL600 720,000 Total 1,077,000 Direct materials $ $357,000 $ 240,000 Direct labor $ $100,000 $ 340,000 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Activity Manufacturing Overhead LE100 UL600 Total 36,000 $ 400,000 135,000 171,000 300,000 150 600 750 200,500 2 2 4 120,000 $ 240,00 0 $100,000 $340,000 Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost $ 1,020,500 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. (Round your final answer to 2 decimal places.) Predetermined overhead rate $ per DLS 1-b. Using the plantwide rate, compute the unit product cost for each product. (Round intermediate calculations and final answers to 2 decimal places.) Unit product cost LE100 UL600 $ $ 2-a. Compute the activity rate for each activity cost pool. (Round your final answers to 2 decimal places.) Activity Cost Pools Machining Setups General factory Product-level Activity Rate $ per MH $ per setup hr. $ per product $ per DL$ 2-b. Using the activity rates, compute the unit product cost for each product. (Round intermediate calculations and final answers to 2 decimal places.) Unit product cost LE100 UL600 $ $