Claire Company produces Tablets and Books. Total overhead coststraditionally have been allocated on the basis of direct laborhours. After implementing activity-based costing, managersdetermined the following cost pools and cost drivers. They alsodecided that general costs should no longer be allocated toproducts. Activity Pool Department Costs Cost Driver Binding$255,816 Number of units Printing 831,402 Machine hours Productdesign 193,116 Change orders General 619,894 None Total overheadcosts $1,900,228 Other information is as follows: Tablets BooksUnits 62,600 20,100 Direct materials cost per unit $3.11 $10.44Direct labor cost per unit $4.17 $7.85 Direct labor hours 25,30016,500 Machine hours 126,000 122,000 Change orders 1,400 2,900Calculate predetermined OH rate. (Round answer to 2 decimal places,e.g. 15.25.) Determine the unit product cost for Tablets and Booksusing the traditional costing system. (Round overhead rate andfinal answers to 2 decmial places, e.g. 15.25.) Calculate ABCrates. (Round answers to 2 decimal places, e.g. 15.25.) Determinethe unit product cost for Tablets and Books using theactivity-based costing system. (Round all rates and final answersto 2 decmial places, e.g. 15.25.) Show that General cost is thedifference between the total overhead costs allocated to productsunder the traditional system and the total cost allocated toproducts under the activity-based costing system. (Round answers to0 decmial places, e.g. 1,525.)
Claire Company produces Tablets and Books. Total overhead coststraditionally have been allocated on the basis of direct laborhours. After implementing activity-based costing, managersdetermined the following cost pools and cost drivers. They alsodecided that general costs should no longer be allocated toproducts. Activity Pool Department Costs Cost Driver Binding$255,816 Number of units Printing 831,402 Machine hours Productdesign 193,116 Change orders General 619,894 None Total overheadcosts $1,900,228 Other information is as follows: Tablets BooksUnits 62,600 20,100 Direct materials cost per unit $3.11 $10.44Direct labor cost per unit $4.17 $7.85 Direct labor hours 25,30016,500 Machine hours 126,000 122,000 Change orders 1,400 2,900Calculate predetermined OH rate. (Round answer to 2 decimal places,e.g. 15.25.) Determine the unit product cost for Tablets and Booksusing the traditional costing system. (Round overhead rate andfinal answers to 2 decmial places, e.g. 15.25.) Calculate ABCrates. (Round answers to 2 decimal places, e.g. 15.25.) Determinethe unit product cost for Tablets and Books using theactivity-based costing system. (Round all rates and final answersto 2 decmial places, e.g. 15.25.) Show that General cost is thedifference between the total overhead costs allocated to productsunder the traditional system and the total cost allocated toproducts under the activity-based costing system. (Round answers to0 decmial places, e.g. 1,525.)
