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Activity Based Costing Example A Manufacturing Company that manufactures 2 products: Standard and a Custom Product. 30.000 Standard Units and 1.250 Custom Units Were Produced

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Activity Based Costing Example A Manufacturing Company that manufactures 2 products: Standard and a Custom Product. 30.000 Standard Units and 1.250 Custom Units Were Produced and Sold. Standard Custom Total Sales $2,660,000 $540,000 $3,200,000 Direct costs: Direct materials.......... $905,500 $69,500 $975,000 Direct labor......... $263,750 $87,500 $351,250 Overhead Estimated that Total Overhead will equal $1,000,000 and require 20,000 machine hours. The standard product requires 17,500 actual machine-hours and the custom product requires 2,500 actual machine-hours. Use this information to calculate the Product Margin for Each Product: Standard Product TOTAL Per Unit Sales Product Costs: Direct Material Direct Labor Overhead Total Product Margin TOTAL Per Unit Custom Product: Sales Product Costs: Direct Material Direct Labor Overhead Product margin

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