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2: Pedagogy Inc. is an e-book reader manufacturer. The company's ABC system has the following five activity cost pools and activity rates: Activity Cost Pools
2: Pedagogy Inc. is an e-book reader manufacturer. The company's ABC system has the following five activity cost pools and activity rates: Activity Cost Pools Labor related Machine related Activity rates $18.00 per direct labor hour Machine setups Production orders Shipments $20.00 per machine hour Cost and activity data have been supplied for the following products: $40 per setup $120.00 per order $15.00 per shipment Direct Material cost per units Direct Labor cost per unit Number of units produced per year Direct labor hours Machine hours Machine setups Production orders Shipments Peda 101 Peda 102 Peda 103 $115.00 $210.00 $280.00 $7.50 $5.00 400 600 $2.50 900 Peda 101 210 300 3 4 5 Total Expected Activity Peda 102 Peda 103 910 1,510 2,000 3,000 7 10 9 12 17 25 Compute the unit product cost of each of the products listed above. [6 Marks]
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