Question

Help me solve to calculate the unit costs! if you could help with other requirements too!

Tribute Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Tribute does large custom orders. Tribute budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50. (Click the icon to view budgeted information.) Read the requirements. Requirement 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plant-wide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) Start by calculating the total direct costs for the basic and deluxe trophies departments. Requirements Basic Deluxe Total Direct materials Forming 29,000 S 22,400 $ 51,400 Data Table 1. Calculate the budgeted unit cost of basic and deluxe trophies Assembly 4,900 7.400 based on a single plant-wide overhead rate, if total overhead is 12,300 allocated based on total direct costs. (Don't forget to include Total direct materials 33,900 29,800 63.700 The controller has asked you to compare plant-wide, department, direct material and direct manufacturing labor cost in your unit Direct manufacturing labor and activity-based cost allocation cost calculation.) Forming 31.400 18,100 49,500 2. Calculate the budgeted unit cost of basic and deluxe trophies Tribute Budgeted Information for the Year Ended November based on departmental overhead rates, where forming Assembly 15.400 18,600 34.000 30, 2017 department overhead costs are allocated based on direct Forming Department Basic Deluxe Total Total direct manufacturing labor 46,800 36,700 manufacturing labor costs of the forming department and 83,500 Direct materials $ 29,000 $ 22,400 $ 51,400 assembly department overhead costs are allocated based on 80.700 S 66,500 $ 147,200 Direct manufacturing labor Total direct costs 31.400 18,100 total direct manufacturing labor costs of the assembly 49,500 department. Overhead costs Next, calculate the budgeted overhead rate for total overhead allocated based on total direct costs. First select the formy answer to th 3. Calculate the budgeted unit cost of basic and deluxe trophies if þor, S = dollar.) Set up 15,840 Tribute allocates overhead costs in each department using Total overhead costs / Total direct costs Budgeted overhead rate General overhead 39,600 activity-based costing, where setup costs are allocated based 103,040 /S 147,200 = $ 0.70 per DC S Assembly Department Basic Deluxe Total on number of batches and general overhead costs for each Direct materials $ 4,900 $ 7,400 $ 12,300 department are allocated based on direct manufacturing labor Finally, calculate unit cost for the basic and deluxe trophies. (Round your final answer to the nearest cent, SX.XX.) Direct manufacturing labor 15,400 18,600 34,000 costs of each department Basic Deluxe Total Overhead costs 4. Explain briefly why plant-wide, department, and activity-based costing systems show different costs for the basic and deluxe Total direct costs 80,700 S 66,500 $ 147,200 General overhead 47,600 trophies. Which system would you recommend and why? Allocated overhead 56.490 46,550 103,040 137,190 S 113,050 S 250,240 Print Done Total costs Unit cost 13.72 S 22.61 Requirement 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. Start by calculating the budgeted overhead rate for the forming and assembly departments based on direct manufacturing labor costs. First select the formula, then enter the applicable amounts and calculate the rates. (Round the budgeted overhead rates to the nearest cent, SX.XX.) Budgeted overhead costs i Budgeted direct labor costs = Budgeted overhead rate Forming $ 55,440 $ 49,500 = $ 1.12 per DLS Assembly S 47,600 IS 34,000 = $ 1.40 per DLS Print Done Finally, calculate the unit cost for the basic and deluxe trophies. (Round your final answer to the nearest cent, SX.XX.) Basic Deluxe Total Total direct costs Allocated overhead Forming Department Assembly Department Total costs Unit cost

Tribute Inc. makes two styles of​ trophies, basic and​ deluxe, and operates at capacity.Tribute does large custom orders. Tributebudgets to produce 10,000basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production​ departments: forming and assembly. In the forming​ department, indirect manufacturing costs are accumulated in two cost​ pools, set up and general overhead. In the assembly​ department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxe​ trophies, they are formed in batches of 50.

Answer 1

The parts solved already are all correct
Remaining are as follows:
Calculation of units cost
	Basic	Deluxe	Total
Total Direct Costs	80,700	66,500	147,200
Allocated Overhead
Forming	35,168	20,272	55,440
Assembly	21,560	26,040	47,600
Total costs	137,428	112,812	250,240
Unit cost	13.7428	22.5624
3.Activity rate = Overhead/Total Activity			Rate
Set up costs	15840	150	105.6	per Set up
General overhead forming	39600	49500	0.8	per DL$
General overhead Assembly	47600	34000	1.4	per DL$
Calculation of unit cost
	Basic	Deluxe	Total
Total Direct Costs	80,700	66,500	147,200
Allocated Overhead
Set up costs	5,280	10,560	15,840
General overhead forming	25,120	14,480	39,600
General overhead Assembly	21,560	26,040	47,600
Total costs	132,660	117,580	250,240
Unit cost	13.266	23.516

Since different rates are used to allocate overheads, costs are different among various methods

ABC System is the most accurate as it better represents cost consumption

5 Total Basic 80700 Deluxe 66500 =B6+C6 =1.12*31400 =1.4*15400 =SUM(B6:39) =B10/10000 =1.12*18100 =1.4*18600 =SUM(C6:09) =C10/5000 =B8+C8 =B9+C9 =SUM(D6:09) 6 Total Direct Costs 7 Allocated Overhead 8 Forming 9 Assembly 10 Total costs 11 Unit cost 12 13 3.Activity rate = Overhead/Total Activity 14 Set up costs 15 General overhead forming 16 General overhead Assembly 17 18 Calculation of unit cost 15840 39600 47600 Rate = (10000/200+5000/50) =B14/C14 49500 =B15/C15 34000 =B16/C16 per Set up per DLS Iper DLS 19 Basic 80700 Deluxe 66500 Total =B20+C20 20 Total Direct Costs 21 Allocated Overhead 22 Set up costs 23 General overhead forming 24 General overhead Assembly 25 Total costs 26 Unit cost D14*10000/200 |=D14*5000/50 =0.8*31400 =0.8*18100 =1.4*15400 =1.4*18600 =SUM(B20:B24) =SUM(C20:C24) =B25/10000 =C25/5000 =B22+C22 =B23+C23 =B24+C24 =SUM(D20:D24) 7