Requirement 1. Use the company's current costing system to find the total cost of producing all Medium TVs and the total cost of producing all Large TVs. What was the average cost of making each unit of each model? Round your answers to the nearest cent. Begin by identifying the formula to compute the current plantwide manufacturing overhead rate, and then compute the rate. (Round your answer to the nearest cent.) Total manufacturing overhead Total direct labour hours = / 1 Plantwide overhead rate 37.16 $ 929,080 25,000 = $ Now use this rate to allocate the overhead to each model, and then calculate the average cost of making each unit of each model. (Round cost per unit to the nearest cent.) Manufacturing cost Medium Large Direct materials $ 668,000 $1,240,000 Direct labour 219,000 385,000 341,872 587,128 Manufacturing overhead Total manufacturing cost Number of units produced $1,228,872 $2,212,128 3,200 384.02 $ 3,700 597.87 $ Cost per unit Requirement 2. Use ABC to find the total cost of producing all Medium TVs and the total cost of producing all Large TVs. What was the average cost of making each unit of each model? Round your answers to the nearest cent. Begin by identifying the formula to compute the activity cost allocation rates, and then calculate the activity cost allocation rates. (Round your answers to the nearest cent.) Activity overhead / Total activity allocation base = Activity allocation rate Materials handling $ 1 $260.00 /mat. orders handled = 176,800 648,600 680 47,000 Machine processing $ $ 13.80/machine hour = ↑ 102 680 10 900 C 0.60 4/0,700 452,320 Manufacturing overhead $ 1,363,760 $ 2,077,320 3,200 Total manufacturing cost Number of units produced Cost per unit 3,700 561.44 $ 426.18 $ Requirement 3. How much cost distortion was occurring between Kies's two products? Calculate the cost distortion in total and on a per unit basis. Could the cost distortion explain the CEO's confusion about pricing competition? Explain. (Round interim and final answers to the nearest cent. Use parentheses or a minus sign for undercosted and negative cost distortion amounts.) Medium Large Cost per unit using current system $ 384.02 $ 426.18 597.87 561.44 Cost per unit using ABC Overcosting/(Undercosting) $ (42.16) $ 36.43 Number of units 3,200 3,700 (134,912.00) $ 134,791.00 Total cost distortion Could the cost distortion explain the CEO's confusion about pricing competition? Explain. (Round your answers to the nearest cent.) The Medium units had been and the Large units had been ▼. Since Kies's sets its sales price at 200% of manufacturing cost, the resulting sales price should have been about $ for the Medium units and about $ for the Large units. - Requirements 1. Use the company's current costing system to find the total cost of producing all Medium TVs and the total cost of producing all Large TVs. What was the average cost of making each unit of each model? Round your answers to the nearest cent. 2. Use ABC to find the total cost of producing all Medium TVs and the total cost of producing all Large TVs. What was the average cost of making each unit of each model? Round your answers to the nearest cent. 3. How much cost distortion was occurring between Kies's two products? Calculate the cost distortion in total and on a per unit basis. Could the cost distortion explain the CEO's confusion about pricing competition? Explain. Print Done X