Wilmington Office Equipment Corporation manufactures two types of filing cabinet

Question

Wilmington Office Equipment Corporation manufactures two types of filing cabinets—Deluxe and Executive—and applies manufacturing overhead to all units at the rate of $132.00 per machine hour. Production information follows.

Can you help me to solve question 1 and 2?

Wilmington Office Equipment Corporation manufactures two types of filing cabinets—Deluxe and Executive—and applies manufacturing overhead to all units at the rate of $132.00 per machine hour. Production information follows.

Can you help me to solve question 1 and 2?

Wilmington Office Equipment Corporation manufactures two types of filing cabinets-Deluxe and Executive-and applies manufacturing overhead to all units at the rate of $132.00 per machine hour. Production information follows Deluxe Executive Direct-material cost Direct-labor cost Budgeted volume (units) $34 $ 51 39 26,400 49,500 39 The controller, who is studying the use of activity-based costing, has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing, and product shipping Data on the number of setups, machine hours, and outgoing shipments, which are the activities' three respective cost drivers, follow Deluxe Executive Total 152 Setups Machine hours Outgoing shipments 112 264 52,800 74,250 127,050 350 200 150 The firm's total overhead of $16,770,600 is subdivided as follows: manufacturing setups, $3,659,040 machine processing, $10,062,360; and product shipping, $3,049,200 Required 1. Compute the unit manufacturing cost of Deluxe and Executive filing cabinets by using the company's current overhead costing procedures Deluxe Executive Unit manufacturing costs 2. Compute the unit manufacturing cost of Deluxe and Executive filing cabinets by using activity-based costing. (Round activity based application rates, overhead application and the final answers to 2 decimal places.) Deluxe Executive Unit manufacturing costs

Explanation / Answer

Answer for question no.1:

Answer for question on.2:

Particulars Deluxe Executive Budgeted volume 26400 49500 Budgeted Machine hours 52800 74250 Budgted machine hour per unit 2 1.5

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