Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Budgeted

image text in transcribedimage text in transcribed

Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Budgeted Cost Activity Driver $13,000 (20 machine setups) 10,400 (16,000 parts) 15,600 (100 inspections) $ 39,000 Product A 1,300 units $ 23 per unit Product B 260 units $ 33 per unit $ 43 per unit 2 per unit $ 53 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 3,250 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Actual Activity Usage Setups Parts Inspections Product A 8 setups 10,000 parts 40 inspections Product B 12 setups 6,000 parts 60 inspections Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using a plantwide overhead rate based on 3,250 direct labor hours, compute the total product cost per unit for each product. Per Unit Direct Materials Direct Labor Overhead Product A Product B Product Cost per Unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp

1st Canadian Edition

978-0132490252, 132490250, 978-0176223311

More Books

Students also viewed these Accounting questions