Assignments: ACCT 2025 QA The following information applies to the questions dis

Question

Assignments: ACCT 2025 QA The following information applies to the questions displayed below Yelena Company manufactured a single product called a Mono-Relay. Then three years ago, introduced a second product called a Bl- the company automated a portion of lts plant and at the same time I Relay that has become Increesingly popetor. The B-Relay is a more direct labor time per unit to manufacture and extensive machining Mono-Relay requires only 0.50 hour of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours Despite the growing popularity of the company's new Bl-Relay, profits have been declining steadily Management is beginning to belleve that there may be a problem with the company's costing system Materials and labor costs per unit are given below Increasingly poputar. The Bi-Relay is a more complex product, requiring 1,00 hour of in the automated portion of the plant. The Direct materials Direct labor (0.50 hour and 1.00 houre $17.00 per hour)8.50 Mono-Relay $66.00 Bi-Relay $8100 $1700 Management estimates that the company will incur $735.360 in manufacturing overhead costs during the current year and 18,000 units of the Mono-Relay and 7,000 units of the Bi-Relay will be produced and sold. value: 2.23 points 1-a. Compute the predetermined manufacturing overhead rate assuming that the company continues to apply manufacturing overhead cost on the basis of direct labor-hours. (Round your final answer to 2 decimal places.) overhead rate per DLH 1-b. Using this rate and other data from the problem, determine the unit product cost of each product.(Do not round intermediate calculations. Round your final answers to 2 decimal places.) MacBook

Explanation / Answer

1a) Predetermined manufacturing overhead rate Total overhead/total DLHs 735360/(18000*0.50+7000*1) $46 per DLH 1b) Product Unit Cost DMC + DLC + MO/H Mono-Relay 66+8.50+(0.50*17) 83 per unit Bi-Relay 81+17+(1*17) 115 per unit 2) Activity cost Pool total esti overhead / total activities Activity Rate Maintaining Inventory 128960/1612 80 per part type Processing Purchase orders 224800/4496 50 per purchase order quality control 309240/15462 20 per tests run Machine-related 72360/2412 30 per MH 3a) Activity cost Pool total esti overhead / total activities Activity Rate Mono- R Mono- R Bi-R Bi-R Maintaining Inventory 128960/1612 80 656 52480 956 76480 Processing Purchase orders 224800/4496 50 3356 167800 1140 57000 quality control 309240/15462 20 5756 115120 9706 194120 Machine-related 72360/2412 30 1156 34680 1256 37680 Total 370080 365280 Number of units 18000 7000 Manuf overhead per unit 20.56 52.18 3b) Mono-Relay 66+8.50+20.56 95.06 per unit Bi-Relay 81+17+52.18 150.18 per unit

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