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Sandstorm Manufacturing Inc. makes two rypes of industrial component partsthe
LE and the UL It annually produces units of LE and units of
ULThe company's conventional cost system allocates manufacturing overhead to
products using a plantwide overhead rate and direct labor dollars as the allocation base.
Additional information relating to the company's two product lines is shown below:
The company is considering implementing an activitybased costing system that
distributes all of its manufacturing overhead to four activities as shown below:
Compute the plantwide overhead rate that would be used in the companys conventional cost system. Round your final answer to decimal places
Using the plantwide rate, compute the unit product cost for each product. Do not round intermediate calculations. Round your answer to decimal places
Compute the activity rate for each activity cost pool. Round your Machining and General factory activity rates to decimal places
Using the activity rates, compute the unit product costs for each product Do not round your intermediate calculations. Round your answers to decimal places
