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2. (15 points) The following activity-based costing information applies to Quality Cardboard Corporation which manufactures two box products: Consumer and Industrial. Data regarding the
2. (15 points) The following activity-based costing information applies to Quality Cardboard Corporation which manufactures two box products: Consumer and Industrial. Data regarding the two products follow: Consumer Industrial Direct Labor-Hours per Unit Annual Production 1.5 25,000 2.25 15,000 Additional information about the company follows: a. Consumer requires $16 in direct materials per unit and Industrial requires $30. b. The direct labor wage rate is $18 per hour. C The ABC system has the following activity cost pools: Activity Cost Pool Activity Measure Estimated Overhead Cost Estimated Activity Consumer Industrial Total Machine setups Special processing Number of setups Machine hours $160,000 500 750 1,250 $400,000 800 200 1,000 Generalfactory Direct labor hours $423,500 5,000 9,000 14,000 Required: mine Determine the unit product cost of each product according to the ABC system.
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