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Siegel Corporation produces a product that is available in both a Deluxe and a Regular model. It is estimated that $2,410,000 in manufacturing overhead costs will be incurred and that the company will produce 9,500 units of the Deluxe model and 20,000 units of the Regular model. The Direct Materials and Direct Labor costs per unit are as follows: Deluxe Regular $155 $20 Direct Materials cost per unit. Direct Labor cost per unit... $124 $11 The company uses Activity-Based Costing to allocate manufacturing overhead costs to its products. Four activity cost pools and their associated activities are as follows: Estimated Activity Deluxe Estimated Regular Overhead Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine-related (machine hours) Cost $ 100,000 220,000 480,000 1,610,000 $2,410,000 300 orders 700 orders 600 requests 10,000 tests 24,250 hours 500 requests 6,000 tests 16,000 hours Total Estimated Overhead Compute the following The activity rate for each Activity Cost Pool; The unit Manufacturing Overhead cost for each model; The unit product cost for each model

Siegel Corporation produces a product that is available in both a Deluxe and a Regular model. It is estimated that $2,410,000 in manufacturing overhead costs will be incurred and that the company will produce 9,500 units of the Deluxe model and 20,000 units of the Regular model. The Direct Materials and Direct Labor costs per unit are as follows: Deluxe Regular $155 $20 Direct Materials cost per unit. Direct Labor cost per unit... $124 $11 The company uses Activity-Based Costing to allocate manufacturing overhead costs to its products. Four activity cost pools and their associated activities are as follows: Estimated Activity Deluxe Estimated Regular Overhead Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine-related (machine hours) Cost $ 100,000 220,000 480,000 1,610,000 $2,410,000 300 orders 700 orders 600 requests 10,000 tests 24,250 hours 500 requests 6,000 tests 16,000 hours Total Estimated Overhead Compute the following The activity rate for each Activity Cost Pool; The unit Manufacturing Overhead cost for each model; The unit product cost for each model

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Siegel Corporation produces a product that is available in both a Deluxe and a Regular model. It is estimated that $2,410,000 in manufacturing overhead costs will be incurred and that the company will produce 9,500 units of the Deluxe model and 20,000 units of the Regular model. The Direct Materials and Direct Labor costs per unit are as follows: Deluxe Regular $155 $20 Direct Materials cost per unit. Direct Labor cost per unit... $124 $11 The company uses Activity-Based Costing to allocate manufacturing overhead costs to its products. Four activity cost pools and their associated activities are as follows: Estimated Activity Deluxe Estimated Regular Overhead Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine-related (machine hours) Cost $ 100,000 220,000 480,000 1,610,000 $2,410,000 300 orders 700 orders 600 requests 10,000 tests 24,250 hours 500 requests 6,000 tests 16,000 hours Total Estimated Overhead Compute the following The activity rate for each Activity Cost Pool; The unit Manufacturing Overhead cost for each model; The unit product cost for each model
Transcribed Image Text:Siegel Corporation produces a product that is available in both a Deluxe and a Regular model. It is estimated that $2,410,000 in manufacturing overhead costs will be incurred and that the company will produce 9,500 units of the Deluxe model and 20,000 units of the Regular model. The Direct Materials and Direct Labor costs per unit are as follows: Deluxe Regular $155 $20 Direct Materials cost per unit. Direct Labor cost per unit... $124 $11 The company uses Activity-Based Costing to allocate manufacturing overhead costs to its products. Four activity cost pools and their associated activities are as follows: Estimated Activity Deluxe Estimated Regular Overhead Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine-related (machine hours) Cost $ 100,000 220,000 480,000 1,610,000 $2,410,000 300 orders 700 orders 600 requests 10,000 tests 24,250 hours 500 requests 6,000 tests 16,000 hours Total Estimated Overhead Compute the following The activity rate for each Activity Cost Pool; The unit Manufacturing Overhead cost for each model; The unit product cost for each model
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