Drilling Company uses activity-based costing and provides this information: Driver Rate Manufacturing Activity Cost Driver Materials...
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Drilling Company uses activity-based costing and provides this information: Driver Rate Manufacturing Activity Cost Driver Materials handling Number of parts $ 0.60 Machinery Number of machine hours 59.00 Assembly Number of parts Inspection Number of finished units 3.25 38.00 Drilling has just completed 88 units of a component for a customer. Each unit required 108 parts and 3.40 machine hours. The prime cost is $1,380 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 88 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 $188 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $308 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. Required 1 Required 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 $188 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $308 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. (Round your final answers to 2 decimal places. For percentages .1234 = 12.34%.) Computation of full cost: Upstream activity costs Manufacturing costs Downstream activity costs Full product cost per unit % % % % < Required 1 Required 2 Show less Drilling Company uses activity-based costing and provides this information: Driver Rate Manufacturing Activity Cost Driver Materials handling Number of parts $ 0.60 Machinery Number of machine hours 59.00 Assembly Number of parts Inspection Number of finished units 3.25 38.00 Drilling has just completed 88 units of a component for a customer. Each unit required 108 parts and 3.40 machine hours. The prime cost is $1,380 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 88 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 $188 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $308 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. Required 1 Required 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 $188 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $308 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. (Round your final answers to 2 decimal places. For percentages .1234 = 12.34%.) Computation of full cost: Upstream activity costs Manufacturing costs Downstream activity costs Full product cost per unit % % % % < Required 1 Required 2 Show less
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