Johnstone Corp. manufactures mid-fi and hi-fi stereo receivers. The following data have been summarized: Indirect manufacturing cost
Question:
Indirect manufacturing cost information includes the following:
The company plans to manufacture 200 units of the mid-fi receivers and 250 units of the hi-fi receivers. Calculate the product cost per unit for both products using activity- based costing.
Transcribed Image Text:
Mid-Fi Hi-Fi S 800 1,500 Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit 200 100 Predetermined Overhead Allocation Rate Mid-Fi 35 setups 25 inspection hours Activity Hi-Fi Setup Inspections Machine maintenance $ 1,300 per setup $ 900 per inspectionhour 35 setups 10 inspection hours 12 per machine hour 1,600 machine hours 1,350 machine hours
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