Complete all calculations using Excel Spreadsheet:

Acme electric manufactures circuit breaker boxes. The product manufacturing overheads for last year are known:

Utility costs (related to machine hours) = $298,000

Product setup costs = $189,200

Cost of ordering materials = $28,380

Cost of material requisitions = $52,030

Details of three product models are the relevant information for last year are:

Labor cost = $65/hour

a) Calculate the unit cost for each of the three products using traditional cost accounting (based on labor content)

b) Calculate the unit cost of each of the three products using ABC

c) Calculate the unit cost of each of the three products using traditional cost accounting (based on machine time content) Hint: calculate the overhead allocation per machine hour (instead of per labor hour).

Model 1 Model 2 Model 3 Number of production runs (setups) 26 37 27 52 Number of material orders 30 45 45 Number of material requisitions 150 105 Units produced 1000 2000 2500 Machine hours per unit 1.5 2.25 1 0.5 Direct labor hours per unit Direct materials per unit $15 $18 $23