Smythe Crystal makes fine tableware in its Ireland factory. The following data a

Question

Smythe Crystal makes fine tableware in its Ireland factory. The following data are taken from its production plans for the year. Direct labor costs Setup costs 5,340,000 625,000 Wine Glasses 206,000 units 252,000 DLH rative Vases Expected production Direct labor hours required Machine setups required 21,000 units 15,600 DLH 600 setups 1,100 setups Required 1. Determine the setup cost per unit for the wine glasses and for the commemorative vases if setup costs are assigned using a single plantwide overhead rate based on direct labor hours. Direct labor costs Activity Driver Units Produced OH Cost per unit Overhead Rate 0.00 0.00 Product Total Overhead Cost Wine Glasses Vases Determine setup costs per unit for the wine glasses and for the commemorative vases if the setup costs are assigned based on the number of setups. Activity Driver nits Produced OH Cost per unit Overhead Rate 0.00 0.00 Product Total Overhead Cost Wine Glasses Vases

Explanation / Answer

1) Setup costs 625,000 2.34 per DLH direct labor hours 267600 product Activity overhead total units oh cost driver rate oh cost produced per unit Wine Glasses 252,000 2.34 588565 206,000 2.86 Vases 15,600 2.34 36435 21,000 1.73 2) Setup costs 625,000 367.65 per machine setup machine setups 1700 product Activity overhead total units oh cost driver rate oh cost produced per unit Wine Glasses 600 367.65 220588 206,000 1.07 Vases 1,100 367.65 404412 21,000 19.26

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