Homework

Requirement 1:
Predetermined manufacturing overhead rate $25.00 per DLH
40,000 units of Mono-relay @0.75 hours PU 30,000 hours
10,000 units of Bi-relay @1.00 hour PU 10,000 hours
Total Direct labor hours required 40,000 hours

Predetermined OH Rate = Total Manufacturing Overhead Total Direct labor hour
= $1,000,000 / 40,000 = $25.00 per DLH

Unit product cost of Mono-Relay $62.75
Unit product cost of Bi-Relay $85.00

Mono-Relay Bi-Relay
Direct Materials $35.00 $48.00
Direct Labor $9.00 $12.00
Manufacturing OH
$25.00 x 0.75 $18.75
$25.00 x 1.00 $25.00
Unit Product Cost $62.75 $85.00 ===================

Requirement 2:
Determine the activity rate (i.e., predetermined overhead rate) for each of the four activity cost pools. (Omit the "$" sign in your response.)

Activity Estimated Expected Activity
Cost Pool Cost Activity Rate

Maintaining $180,000 225 part types $800 per inventory $180,000 / 225 part type Processing $90,000 1,000 orders $90 per purchase order $90,000 / 1,000 order

Quality $230,000 5,750 tests $40 per control $230,000 / 5,750 test Machine $500,0000 10,000 MHs. $50 per related $500,0000 / 10,000 MHs. MH

Requirement 3:
(a) Determine the total amount of manufacturing overhead cost that would be applied to each product using the activity-based costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each product. (Round your answer to 2 decimal places. Omit