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5 Activity Assembly building 10 points Assembling Setting up machines Handling material Packaging building Inspecting and packing Shipping Saved CUST Driver Volume Cost Driver

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5 Activity Assembly building 10 points Assembling Setting up machines Handling material Packaging building Inspecting and packing Shipping Saved CUST Driver Volume Cost Driver Sport Pro Total Machine-hours 6,000 30,000 36,000 Setup hours 40 400 440 Production runs 8 40 48 Direct labor-hours 60,000 22,800 82,800 Number of shipments 100 200 300 Third Quarter Unit Cost Report, Activity-Based Costing-CenterPoint Manufacturing Facility eBook Direct material Direct labor Assembly References Packaging Total direct labor Direct costs Overhead Assembly building Assembling (@ $30 per MH) Handling material (@ $3,000 per run) Mc Graw Hill Sport $ 1,500,000 $ 750,000 990,000 $ 1,740,000 $ 3,240,000 Pro $ 2,400,000 $ 600,000 360,000 $ 960,000 $ 3,360,000 Setting up machines (@ $900 per setup hour) Packaging building Inspecting and packing (@ $5 per direct labor-hour) Shipping (@ $1,320 per shipment) Total ABC overhead Total ABC cost Number of units Unit cost Required: $ 180,000 36,000 24,000 300,000 132,000 $ 672,000 $ 3,912,000 $ 39.12 $ 900,000 360,000 120,000 114,000 264,000 $ 1,758,000 $ 5,118,000 $ 127.95 100,000 40,000 a. Compute the amount of overhead allocated to the Sport and the Pro drones for the first quarter using activity-based costing. cost of a setup hour remains at $900. Assume that all events are the same in the first quarter as in the third quarter except for the number of setup hours. Assume the Model Sport Pro Total ABC Overhead < Prev 5 of 8 Next Help

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