EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent...

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Accounting

EMD Corporation manufactures two products, Product S and ProductW. Product W is of fairly recent origin, having been developed asan attempt to enter a market closely related to that of Product W.Product W is the more complex of the two products, requiring 3hours of direct labor time per unit to manufacture compared to 2hour of direct labor time for Product S. Product W is produced onan automated production line. Overhead is currently assigned to theproducts on the basis of direct-labor-hours. The company estimatedit would incur $1,139,421 in manufacturing overhead costs andproduce 15,000 units of Product W and 75,000 units of Product Sduring the current year. Unit cost for materials and direct laborare: Product S Product W Direct material $ 17 $ 24 Direct labor 1113 Required: a-1. Compute the predetermined overhead rate under thecurrent method of allocation. a-2. Determine the unit product costof each product for the current year. b. The company's overheadcosts can be attributed to four major activities. These activitiesand the amount of overhead cost attributable to each for thecurrent year are given below: Total Activity Activity Cost PoolTotal Cost Product S Product W Total Machine setups required $643,440 1,590 2,240 3,830 Purchase orders issued 58,266 555 192 747Machine-hours required 221,640 7,760 10,710 18,470 Maintenancerequests issued 216,075 736 939 1,675 $ 1,139,421 Using the dataabove and an activity-based costing approach, determine the unitproduct cost of each product for the current year Req A1Req A2Req BCompute the predetermined overhead rate under the current method ofallocation. (Round your answer to 2 decimal places.) Predeterminedoverhead rate per DLH Determine the unit product cost of eachproduct for the current year. (Round your answers to 2 decimalplaces.) Unit Product Cost Product S Product W Using the data aboveand an activity-based costing approach, determine the unit productcost of each product for the current year. (Round your answer to 2decimal places.) Unit Product Cost Product S Product W Using thedata above and an activity-based costing approach, determine theunit product cost of each product for the current year. (Round youranswer to 2 decimal places.) Unit Product Cost Product S ProductW

Using the data above and an activity-based costing approach,determine the unit product cost of each product for the currentyear. (Round your answer to 2 decimal places.)

Unit Product Cost
Product S
Product W

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