Finsishing is $3000000, assembly is $5000000, Assembly DLH is 100000 and finishing DHL is 25000,...
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Finsishing is $3000000, assembly is $5000000, Assembly DLH is 100000 and finishing DHL is 25000, MH is Assembly 70000 finishing 30000
Supervision is $2000000 and Maintenance is $6000000, Supervison is 125000 Direct labor hours and maintenance is 100000. Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here.
Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign budgeted overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Budgeted Overhead Costs by Activity Cost Driver \& Budgeted Usage by Activity hours and 3 machine hours. Compute the overhead cost per unit of each model using ABC. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow{3}{*}{\begin{tabular}{|l} \multicolumn{1}{|c}{ Activity } \\ Maintenance \\ \end{tabular}} & \multicolumn{3}{|c|}{XL} & \multicolumn{3}{|c|}{ RD } \\ \hline & Activity Usage & Activity Rate & \multirow[t]{2}{*}{ Allocated cost } & Activity Usage & Activity Rate & Allocated cost \\ \hline & MH & per MH & & MH & per MH & \\ \hline Totals & & & $ & & & $ \\ \hline Units produced & & & & & & \\ \hline Overhead cost per unit & & & 0 & & & 0 \\ \hline \end{tabular} Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. Compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours
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