ACCT3032TuteSols39.pdf - 151 Award 1.00 point Smithville...

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151. Award: 1.00 point Smithville Industries has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, Manual and Power, about which it has provided the following data: Manual Power Direct materials per unit $ 27.50 $ 64.90 Direct labor per unit $ 7.80 $ 23.40 Direct labor-hours per unit 0.60 1.80 Annual production 40,000 15,000 The company's estimated total manufacturing overhead for the year is $2,675,460 and the company's estimated total direct labor-hours for the year is 51,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity- based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Supporting direct labor (DLHs) $ 1,326,000 Setting up machines (setups) 456,960 Parts administration (part types) 892,500 Total $2,675,460 Manual Power Total Supporting direct labor 24,000 27,000 51,000 Setting up machines 2,346 510 2,856 Parts administration 1,122 663 1,785 Required: a. Determine the manufacturing overhead cost per unit of each of the company's two products under the traditional costing system.
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