Ireland Company uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes stands for flat-screen televisons. The cost of production for the month of April is given below.

During May, 20,000 stands were produced and sold.
Required:
1. Explain why process costing can be used for computing the cost of production for the stands.
2. Calculate the cost per unit for a stand.
3. Explain how activity-based costing can be used to determine the overhead assigned to the cell.LO1

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Cell labor Direct materials Overhead Total $ 40,000 100,000 80,000 $220,000