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required 4:

box 1. and 2. machine or labor box

box 3. increased or decreased

box 4. and 5. above or below

box 6. different or same

box 7. did or did not

antide versus Department Product Corting Accuracy: Activity-Based Costing my company produce speakers (Model A and Model) Both products through we producing departments Model A production mucharboretum the more popular of the two stars. The following datas been thered for the two producto Product Data Model A Model Units produced per year 10,000 100,000 5153,000 51.590,000 Direct labor hour 143,000 290,000 Machine hours 25,000 202,000 Production 30 90 1,000 Inspection hours Maintenance hours 1,300 95.000 9,000 Overhead costs Setup con Inspection costs $290,000 276,000 Machining Menance 433,000 100,000 51,299,000 TO Required 1. Compute the overhead cost per unit for each product by using a plantwide rate based on direct labor hours found to two decima) Pariwidente De DH Model overhead cost per unit Model overhead cost per unit 2. Con the verhead cost per unit for each product by using AC (Round rates and unter costs to two decima) MA overhead cost per unit Mool overhead cost per unit Notre sure to completa both tables below Activity Driver Activity Rate Sot per Inspections Machining 1111 Mance ber . Overhead assignment Model A Model Seps Inspections Machining Maintenance Total verhad Unite pred Omad per unit 1. Suppo matamis edeste une departmental verhead rates. There are two department Department tachimeve with a rate of macho Intensive)th a rate of 51 per direct labor hour. The coroumption of these two drivers is as follows Department 1 Department 2 Machine Hours Direct Labor Hours Hedel 9000 125,000 3. tam to use departmental overed rates. There are two departments Department machine with a rate of machine hour and out intensive with a rate of st per direct latior hout the consumption of the the drivers in a Department Department 2 Machine Hours Direct Labor Hours 000 125.000 Model 190,000 250,000 Compute the overhead cout per unit for each product by using departmental tates (Round towe cima pace) Model per unit Med per unit 4. CONCEPTUAL CONNECTION Using the activity-based productos a me standard, comment on the ability of departmental rates to improve the accuracy of product cating Did the comertal rates do better than the antiderata? A common justition is to use nours for machine intensive departments and hours to leo-intense desartments in the case the standard can say that departmental rates the accuracy of the overhead cast assignment for both out. The department method with a wide rate costs A W the AC method. However there of differn very one took the departe than the plantwider they we wrongina direction. The departmental rates de better than the plant wide

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