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A manufacturing company produces two products: A and B. Projected sales of A and B are 120,000 units and 300,000 units respectively. The related data
A manufacturing company produces two products: A and B. Projected sales of A and B are 120,000 units and 300,000 units respectively. The related data are presented below. A B Direct materials per unit $25 $ 15 Direct labor per unit $10 $ 5 A B Hours per 6000-unit batch: 0.75 Setup hours Inspection hours 1.5 30 20 Total overhead costs and activity levels for the year are estimated as follows: Activity Overhead costs Activity levels 2 Setups Inspections $600,000 $700.000 200 setup hours 2000 inspection hours Based on the ABC costing, calculate the cost per unit for product A. Select one 5 37.5 per unit 1.5 35.5 per unit Total overhead costs and activity levels for the year are estimated as follows: Activity Overhead costs Activity levels Setups Inspections $600,000 $700,000 200 setup hours 2000 inspection hours Based on the ABC costing, calculate the cost per unit for product A Select one: O a. $ 37.5 per unit O b.5 35.5 per unit O c. $21.5 per unit O d. 5 20.5 per unit O e. $ 39.75 per unit
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