Intellig provides the following data for a one-week period for the assembly of two different circuit boards
Question:
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?
Step by Step Answer:
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto