1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign manufacturing overhead to the following four activity cost pools: Activity Cost Pools and (Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost Estimated Overhead Cost Expected Activity $ 797,500 680,000 650,000 Xactive Pathbreaker 35,000 250 Total 75,000 150 1 110,000 400 2 72,500 $ 2,200,000 2,500 7,500 10,000 Determine the activity rate for each of the four activity cost pools. 3. Using the activity rates and other data from the problem, determine the unit product cost of each product. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3 Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. Unit product cost Xactive Pathbreaker $ 84 < Required 1A Required 2 >
1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign manufacturing overhead to the following four activity cost pools: Activity Cost Pools and (Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost Estimated Overhead Cost Expected Activity $ 797,500 680,000 650,000 Xactive Pathbreaker 35,000 250 Total 75,000 150 1 110,000 400 2 72,500 $ 2,200,000 2,500 7,500 10,000 Determine the activity rate for each of the four activity cost pools. 3. Using the activity rates and other data from the problem, determine the unit product cost of each product. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3 Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. Unit product cost Xactive Pathbreaker $ 84 < Required 1A Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product.
2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign
manufacturing overhead to the following four activity cost pools:
Activity Cost Pools and (Activity Measures)
Supporting direct labor (direct labor-hours)
Batch setups (setups)
Product sustaining (number of products)
General factory (machine-hours)
Total manufacturing overhead cost
Estimated
Overhead Cost
Expected Activity
$ 797,500
680,000
650,000
Xactive Pathbreaker
35,000
250
Total
75,000
150
1
110,000
400
2
72,500
$ 2,200,000
2,500
7,500
10,000
Determine the activity rate for each of the four activity cost pools.
3. Using the activity rates and other data from the problem, determine the unit product cost of each product.
Complete this question by entering your answers in the tabs below.
Required 1A Required 1B Required 2
Required 3
Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product.
Unit product cost
Xactive
Pathbreaker
$
84
< Required 1A
Required 2 >
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