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Answers needed for B Carlton's Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 80,000 units of Strands, which
Answers needed for B
Carlton's Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 80,000 units of Strands, which has a per-unit direct material cost of $12 and a per-unit direct labor cost of $45. It also expects to manufacture 20,000 units of Shapes, which has a per-unit material cost of $18 and a per-unit direct labor cost of $30. It is estimated that Strands will use 160,000 machine hours and Shapes will require 40,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $11.02 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: Machine Setups $81,000 Machine Processing 2,000,000 Material Requisitions 123,750 Total Overhead $2,204,750 The cost driver for each cost pool and its expected activity is shown: Strands Shapes Total Machine Setups 90 180 270 Machine Hours 160,000 40,000 200,000 Parts Requisitions 90 135 225 A. What is the per-unit cost for each product under the traditional allocation method? Round your answers to two decimal places. Strands Shapes Total per unit cost $ 79.04 70.04 B. What is the per-unit cost for each product under ABC costing? Round your answers to two decimal places. Strands Shapes Total cost $ X $Step by Step Solution
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