PLEASE HELP ALL QUESTIONS MY DEAR FRIEND NOT ONE STRUGGLED

1. Terry Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows.

Activity Pools	Cost Pool Total			Cost Driver
Repair and maintenance on assembly machine	$	84,800		Number of units produced
Programming cost		98,400		Number of programming hours
Software inspections		9,280		Number of inspections
Product testing		11,220		Number of tests
Total overhead cost	$	203,700
Expected activity for each product follows. Number of Units Number of Programming Hours Number of Inspections Number of Tests Decoder P 16,000 1,700 193 1,200 Decoder Q 37,000 2,300 127 2,100 Total 53,000 4,000 320 3,300

Required:

a.

a.Compute the overhead rate for each activity pool. (Round your answers to 2 decimal places. Allocation Rate Activity Pools Decoder P Decoder Q repair and maintenance on assembly machine programming cost software inspections product testing b. Determine the overhead cost allocated to each product. (Round intermediate calculations to 2 decimal places.) total allocated cost Decoder P Decoder Q 2. Spiro Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost drivers associated with the four overhead activity cost pools follow. Activities Unit Level Batch Level Product Level Facility Level Cost $57,200 $17,860 $12,000 $221,000 Cost driver 2,600 labor hrs. 38 setups Percentage of use 17,000 units Production of 730 sets of cutting shears, one of the companys 20 products, took 210 labor hours and 10 setups and consumed 10 percent of the product-sustaining activities. Required: a. Had the company used labor hours as a companywide allocation base, how much overhead would it have allocated to the cutting shears? (Round intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) b. How much overhead is allocated to the cutting shears using activity-based costing? (Round your answer to the nearest dollar amount.) c. Compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 730 units are produced. If direct product costs are $190 and the product is priced at 35 percent above cost, for what price would the product sell under each allocation system? (Round intermediate calculations and final answers to 2 decimal places.) ABC Labor Hrs Allocated overhead direct cost total cost per unit desired profit sales price Gerald Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow. Basco Boards Shimano Boards Production costs Direct materials $ 24.60 $ 37.20 Direct labor $ 30.60 $ 52.20 Allocated overhead $ 15.30 $ 19.20 Total units produced and sold 4,600 8,600 Total sales revenue $ 400,200 $ 1,083,600 Gerald allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $57,000 per quarter, to the two products equally. Required: a. Compute the per-unit cost for each product. (Round your answers to 2 decimal places.) Basco Boards Shimano boards cost per unit b. Compute the profit for each product. Basco Boards shimano boards profit