Xander Company produces televisions. One of its plants produces two versions of televisions: a
basic model and a premium model. At the beginning of the year, the following data were prepared for
the plant: 

Basic Premium
Model Model
Expected Quantity 20,000 10,000
Selling Cost $90 $200
Prime Costs $40 $ 80
Machine Hours 2,500 2,500
Number of requisitions 500 1,500
Maintenance hours 2,000 6,000
Number of setups 8 32
Additionally, the following overhead activity costs are reported:
Maintaining equipment $220,000
Setting up equipment $112,000
Purchasing materials $ 87,000
Total $41

 

Activity Rates and Activity-Based Product Costing

Hammer Company produces a variety of electronic equipment. Oneof its plants produces two laser printers: the deluxe and theregular. At the beginning of the year, the following data wereprepared for this plant:

In addition, the following information was provided so thatoverhead costs could be assigned to each product:

1. Calculate the overhead rates for eachactivity. If required, carry your answers out to the nearestcent.

2. Calculate the per-unit product cost for eachproduct. Round your answers to the nearest whole dollar.

(E18-20)
Glassman Company, accumulated the following data for 2012:

Milling Department manufacturingoverhead........................$344,000
Finishing Department manufacturingoverhead....................$120,000
Machine hours used
MillingDepartment.......................................................10,000hours
FinishingDepartment.....................................................2,000hours
Labor Hours Used
MillingDepartment.........................................................1,000hours
FinishingDepartment.....................................................1,000hours

(E18-21)
Assume that manufacturing overhead for Glassman Company in theprevious exercise consisted of the following activities andcosts:

Setup (1,000 setuphours)..................................................$144,000
Production Scheduling (400batches)..................................$60,000
Production Engineering (60 changeorders)......................$120,000
Supervision (2,000 direct laborhours).................................$56,000
Machine Maintenance (12,000 machinehours)...................$84,000
Total ActivityCosts.............................................................$464,000

The following additional date were provided for Job 845:

Direct MaterialsCosts............................................................$7,000
Direct Labor Costs (5 Milling direct labor hours;
35 Finishing direct laborhours)...........................................$1,000
SetupHours..........................................................................5hours
ProductionScheduling..........................................................1batch
Machine Hours used (25 Milling machine hours;
5 Finishing machinehours)..............................................30 hours
ProductEngineering................................................3 changeorders

a. Calculate the cost per unit of activity driver for eachactivity cost category.

Setups = $144,000 / 1,000 = $144 per set up hour
Production Scheduling = $60,000 / 400 = $150 per batch
Production Engineering = $120,000 / 60 = $2,000 per changeorder
Supervision = $56,000 / $2,000 = $28 per direct labor hour
Machine Maintenance = $84,000 / 12,000 = $7 per machine hour

b. Calculate the cost of Job 845 using ABC to assign the overheadcosts.

Direct Material = $7,000
Direct Labor = $1,000
Setups = $720
Production Scheduling = $150
Production Engineering = $6,000
Supervision = $1,120
Machine Maintenance = $210
Total Costs = $16,200

c. Calculate the cost of Job 845 using the plantwide overhead ratebased on machine hours calculated in the previous exercise.

Total Overhead = $464,000
Machine Hours = 12,000
Overhead Rate = $38.67

Direct Materials = $7,000
Direct Labor = $1,000
Overhead = $1,160
Total Costs = $9,160

d. Calculate the cost of Job 845 using a machine hourdepartmental overhead rate for the Milling Department and a directlabor hour overhead rate for the Finishing Department (seeE18-20).

Please help with Part D