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Activity Machine setup Parts handling Quality inspections Total budgeted overhead Budgeted Activity Driver Cost $ 27,000 (20 machine setups) 21,620 (16,000 parts) 32,400 (100 inspections) $ 81,000 Unit Information Product A Product B Units produced 2,700 units 540 units Direct materials cost $ 37 per unit $ 47 per unit Direct labor cost $ 57 per unit $ 67 per unit Direct labor hours 2 per unit 2.58 per unit 1. Using a plantwide overhead rate based on 6,750 direct labor hours, compute the total product cost per unit for 2. Consider the following additional information about these two products. If activity-based costing is used to allo (a) compute overhead activity rates. (b) allocate overhead cost to Product A and Product B and compute overhea each and (c) compute product cost per unit for each Actual Activity Usage Product A Product B Setups 8 setups 12 setups Parts 10,000 parts 6,000 parts Inspections 40 inspections 68 inspections Complete this question by entering your answers in the tabs below. Required 1 Required 2 Print Required 1 Required 2 rence Using a plontwide overhead rate based on 6,750 direct labor hours, compute the total product cost per unit for each product Per Unit Direct Materials Direct Labor Overhead Product Cost per Unit Product $ 377 $ Products 47 57 67 AQUINO Required 2 > UVUVI www per unit for each, and (c) compute product cost per unit for each. (Round your final answers to 2 de $ $ a. Compute overhead activity rates Activity Activity Rate Machine setup 1,350.00 per setup Parts handling $ 1.35 per part Quality inspection 324.00 per inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Allocated Cost Activity Product A Product B Machine setup Parts handling Quality inspection Total allocated cost $ 0$ Units produced Overhead cost per unit c. Product cost per unit using activity-based costing Product Cost per Per Unit Unit Product A Product B 0

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