3-800
3-801
3-802
3-803
218.
Uson, Inc., manufactures and sells two products: Product Z2 and Product H9. Data
concerning the expected production of each product and the expected total direct labor-
hours (DLHs) required to produce that output appear below:
Expected
Production
Direct Labor-Hours Per
Unit
Total Direct Labor-
Hours
Product Z2
300
6.0
1,800
Product H9
200
8.0
1,600
Total direct labor-
hours
3,400
The direct labor rate is $18.80 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost per Unit
Product Z2
$267.00
Product H9
$287.30
The company is considering adopting an activity-based costing system with the following
activity cost pools, activity measures, and expected activity:
Estimated
Expected Activity
Activity Cost Pools
Activity Measures
Overhead Cost
Product Z2
Product H9
Total
Labor-related
DLHs
$71,570
1,800
1,600
3,400
Production orders
Orders
38,580
300
200
500
General factory
MHs
97,812
3,700
3,900
7,600
$207,962
3-804
Required:
In all computations involving dollars in the following requirements, round off your answer
to the nearest whole cent.
a. Determine the unit product cost of each product under the company’s traditional
costing method.
b. Determine the unit product cost of each product under the activity-based costing
method.
3-808
3-809
219.
Garhart Corporation uses the following activity rates from its activity-based costing to
assign overhead costs to products.
Activity Cost Pools
Activity Rate
Setting up batches
$28.37
per batch
Assembling products
$5.83
per assembly hour
Processing customer orders
$81.73
per customer order
Data concerning two products appear below:
Product R57J
Product W17B
Number of batches
24
34
Number of assembly hours
577
515
Number of customer orders
21
29
Required:
a. How much overhead cost would be assigned to Product R57J using the company’s
activity-based costing system? Show your work!
b. How much overhead cost would be assigned to Product W17B using the company’s
activity-based costing system? Show your work!
3-810
3-811
3-812
220.
Mouret Corporation uses the following activity rates from its activity-based costing to
assign overhead costs to products.
Activity Cost Pools
Activity Rate
Setting up batches
$92.68
per batch
Processing customer orders
$95.08
per customer order
Assembling products
$3.41
per assembly hour
Last year, Product N79A required 28 batches, 6 customer orders, and 712 assembly hours.
Required:
How much overhead cost would be assigned to Product N79A using the company’s
activity-based costing system? Show your work!
3-813
3-814
221.
Villeda Corporation uses the following activity rates from its activity-based costing to
assign overhead costs to products.
Activity Cost Pools
Activity Rate
Setting up batches
$34.47
per batch
Processing customer orders
$66.77
per customer order
Assembling products
$2.66
per assembly hour
Data concerning two products appear below:
Product G32H
Product U15Z
Number of batches
79
48
Number of customer orders
36
31
Number of assembly hours
487
417
Required:
How much overhead cost would be assigned to each of the two products using the
company’s activity-based costing system?
3-815
3-816