The following data is related to the following two questions A company makes and sells two...

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The following data is related to the following two questions A company makes and sells two products: Product X13 and Product Z24. Until 2021, the company is using an activity-base costing (ABC) system to allocate the company's manufacturing overhead to the two products (the "Other" cost pool includes organization- sustaining costs and Idle capacity costs). The following selected additional information is available for 2021: Expected Activity Product 224 Total Activity Cost Pool Activity Measure Total Cost Product X13 12,000 Supporting direct labor direct labor-hours 34.000 300 Machine setups Number of setups 400 46,000 DLHS 700 setups 2 products Product design Number of products 1 Other Total manufacturing overhead cost Product X13 Product 224 Selling price per unit $220 $160 Per unit direct materials cost $17.5 $23 Per unit direct labor cost $10 $20 Per unit direct labor hours 1 2 DLHS Estimated annual production and sales 12,000 17,000 units [Q] Under the activity-based costing system, what is the total product margin of Product Z24? (ANS) $ [Q] The company is considering switching to a traditional costing system where direct labor hours are used as the allocation base for manufacturing overhead cost when computing a plant-wide overhead rate. What will be the total product margin of Product 224 under the traditional costing system? JANSI S $920,000 $210,000 $48,000 $616,000 $1,794,000 The following data is related to the following two questions A company makes and sells two products: Product X13 and Product Z24. Until 2021, the company is using an activity-base costing (ABC) system to allocate the company's manufacturing overhead to the two products (the "Other" cost pool includes organization- sustaining costs and Idle capacity costs). The following selected additional information is available for 2021: Expected Activity Product 224 Total Activity Cost Pool Activity Measure Total Cost Product X13 12,000 Supporting direct labor direct labor-hours 34.000 300 Machine setups Number of setups 400 46,000 DLHS 700 setups 2 products Product design Number of products 1 Other Total manufacturing overhead cost Product X13 Product 224 Selling price per unit $220 $160 Per unit direct materials cost $17.5 $23 Per unit direct labor cost $10 $20 Per unit direct labor hours 1 2 DLHS Estimated annual production and sales 12,000 17,000 units [Q] Under the activity-based costing system, what is the total product margin of Product Z24? (ANS) $ [Q] The company is considering switching to a traditional costing system where direct labor hours are used as the allocation base for manufacturing overhead cost when computing a plant-wide overhead rate. What will be the total product margin of Product 224 under the traditional costing system? JANSI S $920,000 $210,000 $48,000 $616,000 $1,794,000

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9 10 Activity Cost Pool Activity Rate Supporting direct labor 20 per DLH Machine setups 300 per setu... View the full answer