Cabat Company manufactures two products, Product C and Product D. The company es
ID: 2445435 • Letter: C
Question
Cabat Company manufactures two products, Product C and Product D. The company estimated it would incur $178,910 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period’s operations appear below:
Compute the predetermined overhead rate under the current method. (Round your answer to 2 decimal places.)
Determine the unit product cost of each product for the current year. (Do not round your intermediate calculations. Round your final answer to 2 decimal places.)
The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below:
Determine the unit product cost of each product for the current period using the activity-based costing approach. (Round your intermediate calculations and final answers to 2 decimal places.)
Cabat Company manufactures two products, Product C and Product D. The company estimated it would incur $178,910 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period’s operations appear below:
Explanation / Answer
Ans
Ans a. 1 Predetermined OH Rate Estmiated Manufacturing OH/Estimated Volume of Product A * LH required per Unit of Product A+Estimated Volume of Product B * LH required per Unit of Product B 178910/(3850*1.3)+(3050*.9) 23.09