Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products:
| Product-Related Data | ||
| Scientific | Business | |
| Units produced per year | 77,000 | 770,000 |
| Prime costs | $260,000 | $2,600,000 |
| Direct labor hours | 101,200 | 1,012,000 |
| Machine hours | 48,600 | 486,000 |
| Production runs | 100 | 150 |
| Inspection hours | 2,000 | 3,000 |
| Maintenance hours | 2,250 | 9,000 |
| Department Data | ||
| Department 1 | Department 2 | |
| Direct labor hours: | ||
| Scientific calculator | 73,300 | 27,900 |
| Business calculator | 111,320 | 900,680 |
| Total | 184,620 | 928,580 |
| Machine hours: | ||
| Scientific calculator | 23,800 | 24,800 |
| Business calculator | 371,280 | 114,720 |
| Total | 395,080 | 139,520 |
| Overhead costs: | ||
| Setup costs | $227,000 | $227,000 |
| Inspection costs | 200,000 | 200,000 |
| Power | 241,000 | 135,000 |
| Maintenance | 191,000 | 270,250 |
| Total | $859,000 | $832,250 |
Required:
1. Compute the overhead cost per unit for each product using a plantwide, unit-based rate using direct labor hours. Round your calculations and answers to the nearest cent.
| Plantwide rate | 1.52 |
| Overhead cost per unit: | |
| Scientific | 2 |
| Business | 2 |
2. Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department 1 and direct labor hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required.
| Departmental rates: | |
| Department 1 | 2.17 |
| Department 2 | 0.9 |
| Overhead cost per unit: | |
| Scientific | ? |
| Business | ? |
Repeat using direct labor hours for Department 1 and machine hours for Department 2. Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required.
| Departmental rates: | |
| Department 1 | ? |
| Department 2 | ? |
| Overhead cost per unit: | |
| Scientific | ? |
| Business | ? |
3. Compute the overhead cost per unit for each product using activity-based costing. Round your calculations and answers to the nearest cent.
| Overhead Cost | |
| Scientific | ? |
| Business | ? |