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Azzarelli, Inc. makes bookcases and used an activity-based costing system. Azzarelli's activity areas and related data is as follows: Predetermined Budgeted Cost Overhead Activity Allocation
Azzarelli, Inc. makes bookcases and used an activity-based costing system. Azzarelli's activity areas and related data is as follows: Predetermined Budgeted Cost Overhead Activity Allocation Base of Activity Allocation Rate Materials Handling $210,000 Number of parts $1.00 Assembly $3,000,000 Number of assembling direct labor hours $15.00 Finishing $180,000 Number of finished units $3.00 Azzarelli produced two styles of bookcases in October: the standard bookcase and an unfinished bookcase, which has fewer parts and requires no finishing. The totals for quantities, direct materials costs and other date follow: Product Total Units Produced Total Direct Total Direct Materials Costs Labor Costs Total Number of Parts Total Assembling Direct Labor Hours Standard Bookcase 7,000 $91,000 $140,000 28,000 14,000 7,400 Unfinished Bookcase $81400 $88,800 22,200 8,880 Compute the product manufacturing costs per unit for each type of bookcase
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