Question
Consider the following data for two products of Vigano Manufacturing. Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Budgeted Cost
Consider the following data for two products of Vigano Manufacturing. Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Budgeted Cost Activity Driver $ 25,000 (20 machine setups) 20,000 (16,000 parts) 30,000 (100 inspections) $ 75,000 Product A 2,500 units Product B 500 units Units produced Direct materials cost $ 35 per unit $ 45 per unit $ 55 per unit 2 per unit $ 65 per unit 2.50 per unit Direct labor cost Direct labor hours 1. Using a plantwide overhead rate based on 6,250 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. Actual Activity Usage Product A Setups Parts Inspections 8 setups 10,000 parts 40 inspections Product B 12 setups 6,000 parts 60 inspections. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using a plantwide overhead rate based on 6,250 direct labor hours, compute the total product cost per unit for each product. Per Unit Product A Product B $ Direct Materials Direct Labor 35 $ 45 55 Overhead Product Cost per Unit 65
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