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Consider the following data for two products of Vigano Manufacturing Activity Machine setup Parts handling Inspection Total budgeted overhead Budgeted Cost $160,000 80,000 90,000 $330,000

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Consider the following data for two products of Vigano Manufacturing Activity Machine setup Parts handling Inspection Total budgeted overhead Budgeted Cost $160,000 80,000 90,000 $330,000 Activity Driver 40 Machine setups 20,000 Parts 300 Inspections Parts Activity Driver Usage Product A Product B Per Unit Product A Product B Setups 30 10 Units produced 2,000 400 12.000 8,000 Direct materials cost per unit $30 $20 Inspections 40 260 Direct labor cost per unit $50 $60 Direct labor hours per unit 2.50 4.00 1.Using a plantwide overhead rate based on 6,600 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates. (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each

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