ss b. The company is considering using an activity-based costing system to compute unit product costs for external financial reportsinstead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools.Data relating to these activities for the current period are given below:Activity Cost PoolsMachine setupsPurchase ordersOrder sizeTotalUnit product costEstimated OverheadCosts$ 12,99077,64095,280$185,910Product CProduct C1909808,400Product DExpected ActivityProduct D2001,3207,140Determine the unit product cost of each product for the current period using the activity-based costing approach. (Round yourintermediate calculations and final answers to 2 decimal places.)Total3902,30015,540 Cabio Company manufactures two products, Product C and Product D. The company estimated it would incur $185,910 inmanufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period's operations appear below:Estimated volumeDirect labor-hours per unitDirect materials cost per unitDirect labor cost per unit.Unit product costper DLHProduct CProduct C4,200 units2.00 hoursRequired:a-1. Compute the predetermined overhead rate under the current method. (Round your answer to 2 decimal places.)Predetermined overhead rate$15.60$ 20.00Product DProduct D3,400 units2.10 hoursa-2. Determine the unit product cost of each product for the current year. (Round your intermediate calculations and final answers to2 decimal places.)$ 28.50$ 21.00

Name: ss b. The company is considering using an activity-based costing syste
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Description: ss b. The company is considering using an activity-based costing system to compute unit product costs for external financial reportsinstead of its traditional system based on direct labor-hours. The activity-based costing system would use three activ

Activity-based costing is a method of assigning the cost to products, services, or customers based…

Business

Accounting

a-1. Compute the predetermined overhead rate under the current method. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH a-2. Determine the unit product cost of each product for the current year. (Round your intermediate calculations and final answers to 2 decimal places.)

a-1. Compute the predetermined overhead rate under the current method. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH a-2. Determine the unit product cost of each product for the current year. (Round your intermediate calculations and final answers to 2 decimal places.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 30P: Primera Company produces two products and uses a predetermined overhead rate to apply overhead....

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