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Dear Tutor, Here is again. I don't need to ge...




Dear Tutor, Here is again. I don't need to get all information, I already solved on requirement on number 1 and 2. I need to get only number 3 on requirement. I think if you provide the information on number 3, you need to see on 1 and 2 that's why I just wrote them. Please let me know what you think. Thanks for your help, Ellix Company manufactures two models of ultra-high fidelity speakers, the X200 model and the X99 model. Data regarding the two products follow: Product Direct labor-hours Annual production Ttl. DL hrs X200 1.8 DLHs per unit 5,000 units 9,000 DLHs X99 0.9 DLHs per unit 30,000 units 27,000 DLHs Additional information about the company follows: A. Model X200 requires $72 in direct materials per unit, and Model X99 requires $50 B. The direct labor rate is $10 per hour C. The company has always used direct labor hours as the base for applying manufacturing overhead costs to products. D. Model X200 is more complex to manufacture than Model X99 and requires the use of special equipment. E. Because of the special work required in (D) above, the company is considering the use of activity-based costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Activity Cost Pool Activity Measure Total Cost Machine setups Number of setups $360,000 Special processing Machine hours 180,000 General factory Direct labor-hours 1,260,000 Expected Activity Activity Measure Model X200 Model X99 Total Number of setups 50 100 150 Machine hours 12,000 0 12,000 Direct labor-hours 9,000 27,000 36,000 Required: 1. Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. A. Compute the predetermined overhead rate B. Compute the unit product cost of each model 2. Assume that the company decides to use activity-based costing to apply overhead costs to products. A. Compute the activity rate for each cost pool and determine the amount of overhead cost that would be applied to each model using the activity-based costing system B. Compute the unit product cost of each model 3. Explain why manufacturing overhead cost shifts from model X99 to Model X200 under activity based costing.


Paper#9438 | Written in 18-Jul-2015

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