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 >
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3PA: Activity-based and department rate product costing and product cost distortions Black and Blue...
Related questions
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 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning