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Archada Company manufactures a variety of products. Its job-order costing system uses an activity-based approach. There are two direct-cost categories (direct materials and direct labor)

Archada Company manufactures a variety of products. Its job-order costing system uses an activity-based approach. There are two direct-cost categories (direct materials and direct labor) and three indirect cost pools. The cost pools represent three activity areas at the plant.

Manufacturing Activity Area

Budgeted Cost for 2021

Cost driver used as allocation base

Cost allocation rate

Materials Handling

200,000

Parts

$0.25

Cutting

2,000,000

Parts

$2.50

Assembly

2,000,000

Direct Labor hours

$25.00

Two styles of products were produced in January , its first month of operations, the Venus, and the Mars. Their quantities, direct materials costs, and other data from January 2021 are as follows

Units produced

Direct materials costs

Number of parts

Direct manufacturing labor hours

Venus

5,000

$590,000

100,000

7,500

Mars

2,000

$200,000

12,000

3,000

The direct labor rate is $30 per hour. In January, Venus products were sold for $360.00 per unit while Mars products were sold for $280.00 per unit.

For Venus products:

Q1 - Compute the total cost of materials handling charged in January. *

Q2 - Compute the total cost of cutting charged in January. *

Q3 - Compute the total cost of the assembly charged in January. *

Q4 - Compute the total cost per unit. *

Q5 - Compute the total amount of the gross profit. *

For Mars Products:

Q1 - Compute the total cost of materials handling charged in January. *

Q2 - Compute the total cost of cutting charged in January. *

Q3 - Compute the total cost of the assembly charged in January. *

Q4 - Compute the total cost per unit. *

Q5 - Compute the total amount of the gross profit. *

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