Drilling Company uses activity-based costing and provides this information: Cost Driver Driver Rate Manufacturing Activity Materials...
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Drilling Company uses activity-based costing and provides this information: Cost Driver Driver Rate Manufacturing Activity Materials handling Number of parts $ 0.80 Machinery Number of machine hours 58.00 Assembly 3.20 Inspection Number of parts Number of finished units 37.00 Drilling has just completed 87 units of a component for a customer. Each unit required 107 parts and 3.35 machine hours. The prime cost is $1,370 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required: 1. Compute the total manufacturing costs and the unit costs of the 87 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $187 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $307 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstream activities. Also compute the relative proportion of each main cost category. Complete this question by entering your answers in the tabs below. Drilling Company uses activity-based costing and provides this information: Cost Driver Driver Rate Manufacturing Activity Materials handling Number of parts $ 0.80 Machinery Number of machine hours 58.00 Assembly 3.20 Inspection Number of parts Number of finished units 37.00 Drilling has just completed 87 units of a component for a customer. Each unit required 107 parts and 3.35 machine hours. The prime cost is $1,370 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required: 1. Compute the total manufacturing costs and the unit costs of the 87 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $187 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $307 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstream activities. Also compute the relative proportion of each main cost category. Complete this question by entering your answers in the tabs below.
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1 Compute the total manufacturing costs and unit costs of the 87 units using ABC costing Given Numbe... View the full answer
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
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