lab 2 Claire Company produces Tablets
lab 2 Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Activity Pool Department Costs Cost Driver Binding $269,568 Number of units Printing 803,296 Machine hours Product design 183,040 Change orders General 633,152 None Total overhead costs $1,889,056 Other information is as follows: Tablets Books Units 62,800 20,100 Direct materials cost per unit $3.09 $10.09 Direct labor cost per unit $3.93 $8.08 Direct labor hours 25,500 16,100 Machine hours 125,000 120,000 Change orders 1,400 3,000 Calculate predetermined OH rate. (Round answer to 2 decimal places, e.g. 15.25.) Predetermined OH rate $ /DLH LINK TO TEXT Determine the unit product cost for Tablets and Books using the traditional costing system. (Round overhead rate and final answers to 2 decmial places, e.g. 15.25.) Tablets Books Unit product cost $ $ LINK TO TEXT Calculate ABC rates. (Round answers to 2 decimal places, e.g. 15.25.) ABC rates Binding $ /unit Printing $ /machine hour Product design $ /change order LINK TO TEXT Determine the unit product cost for Tablets and Books using the activity-based costing system. (Round all rates and final answers to 2 decmial places, e.g. 15.25.) Tablets Books Total unit cost $ $ LINK TO TEXT Show that General cost is the difference between the total overhead costs allocated to products under the traditional system and the total cost allocated to products under the activity-based costing system. (Round answers to 0 decmial places, e.g. 1,525.) Traditional ABC Difference Total allocated overhead $ $ $ LINK TO TEXT
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