Intellig provides the following data for a one-week period for the assembly of two different circuit boards

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Intellig provides the following data for a one-week period for the assembly of two different circuit boards A and B used by two different computer manufacturing customers.

Material costs used and supplied for 3,500 units of board A produced and shipped, $40,000; 2,000 units of board B produced and shipped, $40,000.

Packaging and shipping provided on a per-unit basis, $10,500 shipping, $7,000 for materials, and

$14,000 for labor ($31,500 total).

Batch setup labor cost used for five batches of board A, $1,000; two batches of board B, $600.

Batch setup materials used and supplied for seven batches, $4,200.

Labor supplied (a unit-level cost) for production of both boards, $14,000; usage based on number of parts assembled: eight parts for each board A, 16 parts for each board B.

Facility-level equipment for both products, $25,000, traced by equipment usage: 60 percent to product A and 40 percent to product B.

Custodial and security service (facility-level cost) for the manufacturing area, $3,000 traced 50 percent to board A and 50 percent to board B.

Required Resources and activities are either unit level, batch level, or facility level. Compute cost-driver rates for each activity/resource. What is the cost per unit of these manufacturing activities for the week?

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Related Book For  book-img-for-question

Cost Management Strategies For Business Decisions

ISBN: 12

4th Edition

Authors: Ronald Hilton, Michael Maher, Frank Selto

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