Tableau DA 4-3: Mini-Case, Computing and assigning costs using ABC LO P3 Chrom Co. manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Estimated Overhead Costs by Department Estimated Direct Labor Hours & Machine Hours by Department 150,000 hrs 125,000 hrs 100,000 hrs Finishing 75,000 hrs Assembly Total: $8,000,000 Assembly 50,000 hrs Assembly 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Estimated Overhead Costs by Activity Cost Driver & Expected Usage by Activity Supervision Maintenance Supervision Total: $8,000,000 Maintenance Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. The company's XL model requires 2 direct labor hours and 1 machine hour. The RD model requires 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 Compute the overhead cost per unit of each model using ABC. XL RD Activity Activity Driver Incurred Overhead Assigned Activity Driver Incurred Overhead Assigned Activity Rate per MH per DLH Maintenance Supervision Overhead Cost Per Unit MH DLH DLH $ 0 2. The company's XL model requires 2 direct labor hours and 1 machine hour. The RD model requires 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. Model Activity Driver Plantwide OH Rate OH Cost Per Unit DLH DLH RD Required 2A Required 3 > 2. The company's XL model requires 2 direct labor hours and 1 machine hour. The RD model requires 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer?