university of california Operations And Supply Chain Management Assignment Help - Sandstorm Manufacturing Inc.

Question - Sandstorm Manufacturing Inc. makes two types of industrial component parts%u2014the LE100 and
the UL600. It annually produces 120,000 units of LE100 and 25,000 units of UL600. The
company%u2019s conventional cost system allocates manufacturing overhead to products using a
plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating
to the company%u2019s two product lines is shown below:
LE100 UL600 Total
Direct materials $ 720,000 $ 357,000 $ 1,077,000
Direct labor $ 240,000 $ 100,000 $ 340,000


The company is considering implementing an activity-based costing system that distributes all of its
manufacturing overhead to four activities as shown below:
Activity Cost Pool
(and Activit ...Read More y Measure) Manufacturing Overhead
Activity

LE100 UL600 Total
Machining (machine-hours) $ 400,000 36,000 135,000 171,000
Setups (setup hours) 300,000 150 600 750
Product-level (number of
products) 200,500 2 2 4
General factory (direct
labor dollars) 120,000 $ 240,000 $ 100,000 $ 340,000

Total manufacturing
overhead cost $ 1,020,500







Required:
1-
a.
Compute the plantwide overhead rate that would be used in the company%u2019s conventional
cost system.

Predetermined overhead rate $ per DL$
1-b. Using the plantwide rate, compute the unit product cost for each product.

LE100 UL600
Unit product cost




i'm looking for the unit product cost using the plantwide rate. i have no clue how to
get it and i've been trying for quite some time. help please and show how you got it
would be great. ...Read Less

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