Compute ABC Product Costs (L03) Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based
Question:
Compute ABC Product Costs (L03)
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool Activity Rates Labor related $6.00 per direct labor-hour Machine related $4.00 per machine-hour Machine setups $50.00 per setup Production orders $90.00 per order Shipments $1 4.00 per shipment General factory $9.00 per direct labor-hour Cost and acth it\ data have boon supplied for the following products:
K425 M67 Direct materials cost per unit $1 3.00 $56.00 Direct labor cost per unit $5.60 $3.50 Number of units produced per year 200 2,000 Total Expected Activity K425 Direct labor-hours 80 Machine-hours 1 00 Machine setups 1 Production orders 1 Shipments 1 M67 500 1,500 4 4 10 Required:
Compute the unit product cost of each product listed above.
Step by Step Answer:
Introduction To Managerial Accounting
ISBN: 9780073048833
3rd Edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen