Answer:
Feauto Manufacturing Corporation
The manufacturing overhead that would be applied to a unit of product E76I under the activity-based costing system is closest to:
= $62
Explanation:
a) Data and Calculations:
I63E E76I
Direct materials per unit $ 22.60 $ 67.80
Direct labor per unit $ 11.40 $ 34.20
Direct labor-hours per unit 0.60 1.80
Annual production (units) 30,000 10,000
Estimated manufacturing overhead = $1,554,600
Estimated direct labor hours = 36,000 hours
Activities and Activity Measures Estimated Overhead Cost
Assembling products (DLHs) $ 360,000
Preparing batches (batches) 181,000
Product support (product variations) 1,013,600
Total $ 1,554,600
Expected Activity I63E E76I Total
Total DLHs 18,000 18,000 36,000
Batches 1,180 690 1,870
Product variations 2,360 1,380 3,740
Activity rates: Costs Activities Rates
Assembling products (DLHs) $ 360,000 36,000 $10 per DLH
Preparing batches (batches) 181,000 1,870 $96.80 per batche
Product support (product variations) 1,013,600 3,740 $271.02 per product variation
Manufacturing overhead applied:
I63E E76I
Assembling products $180,000 ($10*18,000) $180,000 ($10*18,000)
Preparing batches 114,224 (1,180*$96.80) 66,792(690*$96.80)
Product support 639,607 (2,360*$271.02) 374,007 (1,380*$271.02)
Total overhead $933,831 $620,799
Annual production 30,000 10,000
Overhead per unit $31.13 $62.08
