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ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT BC, process costing. Sander Company produces mathematical and financial calculators and op- erates at capacity. Data related to the two
ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT BC, process costing. Sander Company produces mathematical and financial calculators and op- erates at capacity. Data related to the two products are presented here: Mathematical Financial Annual production in units Direct material costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours 45,000 $180,000 $90,000 4,500 30,000 45 ,200 90,000 360,000 $180,000 9,000 60,000 45 600 Total manufacturing overhead costs are as follows: Machining costs Setup costs Inspection costs Total $360,000 108,000 117,000 Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. 1. 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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