Question
3. .Frase Corp is manufacturing marbles in two types TYPE1 and TYPE2. These two product and the company has the following cost structure. The company
3. .Frase Corp is manufacturing marbles in two types TYPE1 and TYPE2. These two product and the company has the following cost structure. The company is using Activity Based Costing method. Overhead Activities Activity Cost Cost driver Machine Setup $180.000 1500 setup hours Materials Handling $ 50.000 12500 pounds of mat. Hand. Generating electric power for production $20.000 20000 kilowatt hours TYPE1 TYPE2 Number of units produced 10.000 20.000 Direct materials cost $20.000 $ 25.000 Direct labor cost $ 12.000 $ 20.000 Number of setup hours 100 120 Pounds of materials used 500 1500 Kilowatt-hours used 1000 2000 a. What is the total cost for TYPE1 and TYPE2 (10 points) b. WHat is the cost per unit for TYPE1 and TYPE2 (10 points)
3. Frase Corp is manufacturing marbles in two types TYPE1 and TYPE2. These two product and the company has the following cost structure. The company is using Activity Based Costing method. Overhead Activities Activity Cost Cost driver Machine Setup Materials Handling Generating electric power for production $180.000 $ 50.000 1500 12500 setup hours pounds of mat. Hand. kilowatt hours $20.000 20000 TYPE1 TYPE2 Number of units produced 10.000 20.000 $20.000 $ 25.000 $ 12.000 $ 20.000 Direct materials cost Direct labor cost Number of setup hours Pounds of materials used Kilowatt-hours used 100 120 500 1500 1000 2000 a. What is the total cost for TYPE1 and TYPE2 (10 points) b. WHat is the cost per unit for TYPE1 and TYPE2 (10 points)
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