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5-23 ABC, process costing. Sander Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here: Mathematical
5-23 ABC, process costing. Sander Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here: Mathematical Financial Annual production in units 45,000 90,000 Direct material costs S180,000 $360,000 Direct manufacturing labor costs $ 90,000 S180,000 Direct manufacturing labor hours 4,500 9,000 Machine-hours 30,000 60,000 Number of production runs 45 Inspection hours 1.200 600 Total manufacturing overhead costs are as follows: Total Machining costs $360,000 Setup costs 108,000 Inspection costs 117,000 Required 45 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. 2. Compute the manufacturing cost per unit for each product. 3. How might Sander's managers use the new cost information from its activity-based costing system to better manage its business
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