20 per direct labor hour The consumption of these two drivers is as follows

# 20 per direct labor hour the consumption of these two

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and Department 2 (labor intensive) with a rate of \$1.20 per direct labor hour. The consumption of these two drivers is as follows: Department 1 Department 2 Machine Hours Direct Labor Hours Model A 10,000 128,000 Model B 190,000 290,000 Compute the overhead cost per unit for each product by using departmental rates. (Round to two decimal places.) 4. CONCEPTUAL CONNECTION Using the activity-based product costs as the standard, comment on the ability of departmental rates to improve the accuracy of product costing. Did the departmental rates do better than the plantwide rate? 1. Compute the overhead cost per unit for each product by using a plantwide rate based on direct labor hours. (Round to two decimal places.) Plantwide rate: \$_________ per DLH Model A: \$__________ overhead cost per unit Model B: \$__________ overhead cost per unit 2. Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead costs to two decimal places.)
Model A: overhead cost per unit Model B: overhead cost per unit Note : Be sure to complete both tables below. Activity Driver Activity Rate Setups Production runs per hour Inspections Inspection hours per run Machining Machine hours per hour Maintenance Maintenance hours per run \$ \$ \$ \$ \$ \$
Overhead assignment Model A Model B Setups Inspections Machining Maintenance Total overhead ÷ Units produced Overhead per unit 3. Suppose that Ramsey decides to use departmental overhead rates. There are two departments: Department 1: (machine intensive) with a rate of \$3.90 per machine hour and Department 2: (labor intensive) with a rate of \$1.20 per direct labor hour. The consumption of these two drivers is as follows: Department 1 Department 2 Machine Hours Direct Labor Hours Model A 10,000 128,000 Model B 190,000 290,000 Compute the overhead cost per unit for each product by using departmental rates. (Round to two decimal places.) \$ \$ \$ \$ \$ \$
Model A: per unit Model B: per unit \$ \$

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