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Calculate the unit cost of Gaud Fino Trazo and Meier Exactum pens, using both the process-based approach and the activity-based cost approach WW WWWAANNNN Bolgrafos
Calculate the unit cost of Gaud Fino Trazo and Meier Exactum pens, using both the process-based approach and the activity-based cost approach
WW WWWAANNNN Bolgrafos Exactas S.A. manufactures two types of specialized pens for the design of architectural projects, Gaud Fino Trazo and Meier Exactum Gaud Fino Trazo Meier Exactum Quantity 52,300 units 46,800 units Lots 700 540 Prime Costs $23,900 $47,100 Machine Hours 926 1,300 Engineering 24 67 Modifications Market Price $90 $110 Additional information: Costs Cost Driver Preparation Costs Lots 46,900 Electricity Machine Hours 19,100 Engineering $38,700 Engineering Support Modifications 1. Calculate the manufacturing cost per unit for each type of pen, using the approach based on units, assigning the cost to pens based on the number of machine hours. 2. Calculate the manufacturing cost of each unit using the activity-based costing system, ABCStep by Step Solution
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