Question
A company has two products: standard and deluxe. The company expects to produce 41,940 Standard units and 40,418 Deluxe units. It uses activity-based costing and
A company has two products: standard and deluxe. The company expects to produce 41,940 Standard units and 40,418 Deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools.
Budgeted Activity of Cost Driver
| |||||||||
Budgeted OH Cost | Standard | Deluxe | |||||||
Activity 1: Purchasing | $ | 93,000 | 2,500 | Purchases | 5,250 | Purchases | |||
Activity 2: Designing | $ | 92,000 | 4,500 | Designs | 5,500 | Designs | |||
Activity 3: Shipping | $ | 87,000 | 3,000 | Orders | 2,800 |
Orders
| |||
Required:
Make a Job Cost Sheet for the Standard Units. Use the following Direct Materials and Direct Labor information.
- Direct Materials $7,918
- Direct Labor $7,612
what is the per unit cost
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