Wetz Manufacturing Corporation Has a Traditional Costing System in Which

question 4

Essay

Wetz Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs).The company has two products,Q30V and S33B,about which it has provided the following data: The company's estimated total manufacturing overhead for the year is $1,527,600 and the company's estimated total direct labor-hours for the year is 38,000.
The company is considering using a variation of activity-based costing to determine its unit product costs for external reports.Data for this proposed activity-based costing system appear below: Required:
a.Determine the manufacturing overhead cost per unit of each of the company's two products under the traditional costing system.
b.Determine the manufacturing overhead cost per unit of each of the company's two products under activity-based costing system.

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Definitions:

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.

Autonomic Nervous Systems

The part of the nervous system responsible for control of the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Somatic Nervous System

A component of the peripheral nervous system that controls voluntary movements of the body by innervating skeletal muscles.

Sensory Receptors

Cells or organs specialized to detect external stimuli from the environment and convert them into neural signals for processing by the nervous system.