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A a 21 . kitchen AaBbia Lai H Giang, Pan Pages Question 13(8 marks) Flyer Corporation manufactures two products Product A and Product B. Product B is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product A Product B is the more complex of the two products, requiring three hours of direct labour time per unit to manufacture, compared to one and one-half hours of direct labour time for Product A Product B is produced on an automated production Overhead is currently assigned to the products on the basis of direct labour hours. The company estimated it would incur $396,000 in manufacturing overhead costs and produce 5.500 units of Product Band 22,000 units of Product A during the current year. Unit costs for materials and direct labour are Direct Materials Direct Labour Predest $9 57 Product $20 $15 Required a) Compute the predetermined overcadrate under the current method of allocation, and b) The company's overhead costs can be attributed to fout major activities. These activities and the amount of overhead cost attributable to cach for the current year are given below MacBook Air 26 re FE w $ * - . 2 . 3 & 7 5 A 6 ) O 8 W E R T Y U 1 0 D F G H J L L ... X C B N . V - > . - AA A A Da 211 LAN Cafe || [ Capan AaBb|tchbac | SC04 Required a) Compute the predetermined overhead rate under the current method of allocation and determine the unit product cost of each product for the current year. b) The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Estimated Expected Activity Overhead Product Product Activity Cost Pools Coste A B Machine setups required $170,000 700 Purchase orders issued 37,000 300 200 Machine-hours required 91,000 4,000 9,000 Maintenance requests issued 98,000 $396.000 1,000 Total 1,700 500 13.000 1.000 400 600 Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. English Steel DF MacBook Air 80 295 Db F A $ 4 % 5 &X 7 3 6 8 9 0 E R T Y C 0 P D F G H J

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