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Chapters 7 and 8 10 Points Show all supporting computations. 1. Flyer Corporation manufactures two products, Product A and Product B. Product B is the more complex of the two products, requiring three hours of direct labor time per unit to manufacture compared to one and one-half hours of direct labor time for each unit of Product A. Overhead is currently assigned to the products on the basis of direct labor hours. The company estimated it would incur $423,300 in manufacturing overhead costs and produce 5,600 units of Product B and 22,000 units of Product A during the current year (for a total estimated direct labor hours of 49,800). Costs for materials and direct labor per unit of product are: Direct material Direct labor Product A S9 S7 Product B $20 Required (6 Points): a. What would be the Predetermined Overhead Rate per DLH using Traditional Costing? 423300/48.5 DLH o. Using Traditional Costing, what amount of overhead would be applid to each unit of Product A? o each unit of product B? 403,300 3.x 433,300/75 e. Using Traditional Costing, calculate the produet cost per unit for Product A and for Product B. (Now switching to Activity Based Costing) The company's overhcad costs can be attibuted to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below Total Activity Cost Pools Total Cost $170,000 37,000 91,000 98,000 $396,000 Product A 700 300 4,000 400 Product B 1000 200 9,000 600 otal Machine setups required Purchase orders issued Machine-hours required Maintenance requests issued 1.700 500 13,000 1,000 d. Using Activity Based Costing, calculate the predetermined overhead rate for each of the four cost pools. e. Using Activity Based Costing, what amount of overhead would be applied to each unit of Product A? To each unit of Product B? fUsing Activity Based Costing, calculate the product cost per unit for Product A and for Product B

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