Question
Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these
Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Basic Advanced Total Units produced 150,000 450,000 Prime costs $10,500,000 $45,000,000 $55,500,000 Machine hours 150,000 750,000 900,000 Engineering hours 300 2,700 3,000 Receiving orders 400 1,200 1,600 Inspection hours 800 1,600 2,400 Overhead costs: Machining $7,200,000 Engineering 1,410,000 Receiving 640,000 Inspecting products 384,000
Calculate the unit costs using activity rates. Round your answers to the nearest cent.
Unit cost Basic________ $ per unit
Advanced $__________ per unit
Calculate the overhead cost per unit. Round your answers to the nearest cent. Overhead
Cost Basic $________ per unit
Advanced $________ per unit
What if consumption ratios instead of activity rates were used to assigned costs? Show the cost assignment for the inspection activity
Basic $ ________
Advanced $ ____________
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