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10.23 ABC costing; ABM LO3 Palmer Company uses an activity-based costing system. It has the following manufacturing activity areas, related drivers used as allocation bases,
10.23 ABC costing; ABM LO3 Palmer Company uses an activity-based costing system. It has the following manufacturing activity areas, related drivers used as allocation bases, and cost allocation rates: Activity Machine set-up Materials handling Machining Assembly Inspection Cost driver Number of set-ups Number of parts Machine hours Direct labour hours Number of finished units Cost allocation rate $50.00 $0.50 $26.0 $22.00 $12.00 During the month, 100 units were produced, requiring two set-ups. Each unit consisted of 19 parts, and used 1.5 direct labour hours and 1.25 machine hours. Direct materials cost $100 per finished unit. All other manufacturing costs are classified as conversion costs. ABC costs for research and marketing costs are $140. All other non-manufacturing ABC costs are $320 per unit. Required (a) Calculate the manufacturing cost per unit for the period. (b) Calculate the total cost (manufacturing and non-manufacturing costs) per unit for the period
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