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can someone please help solve this and show work? thank you so much 15. A company manufactures two products: A and B. The company's accounting
can someone please help solve this and show work? thank you so much
15. A company manufactures two products: A and B. The company's accounting records revealed the following per-unit costs for direct material and direct labor: Product A Product B Production volume (units) 2,500 10,000 Direct material $16 $84 Direct labor: 4 hours at $12/hour $48 1 hour at $12/hour $12 Management is considering a shift to activity-based costing and gathered the following data: Expected Activity Activity Cost Pool Estimated Cost Activity cost driver Product A Product B Total Setups $240,000 Number of setups 80 40 120 General factory $600,000 Direct labor hours 10,000 10,000 20,000 Machine processing $120,000 Machine hours 2,000 1,000 3,000 Assuming that actual activity is the same as expected activity, what is the unit product cost of Product B under activity-based costing? a. $138 b. $123 c. $118 d. $96 None of the above e. 16. Last year, a company reported sales of $640,000, a contribution margin of $160,000, and a net operating income of $40,000. Based on this information, the break-even point in sales dollars was: a) $240,000 b) $480,000 c) $800,000 d) $400,000 e) None of the above |Step by Step Solution
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