Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following data for two products of Vigano Manufacturing. Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced

image text in transcribed

Consider the following data for two products of Vigano Manufacturing. Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Budgeted Cost Activity Driver $ 16,000 (20 machine setups) 12,800 (16,000 parts) 19,200 (100 inspections) $ 48,000 Product A 1,600 units Product B 320 units $ 36 per unit Direct materials cost $ 26 per unit $ 46 per unit 2 per unit $ 56 per unit 2.50 per unit Direct labor cost Direct labor hours 1. Using a plantwide overhead rate based on 4,000 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 Setups Parts Inspections Product A 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 4,000 direct labor hours, compute the total product cost per unit for each product. Per Unit Product A Product B Direct Materials Direct Labor Overhead Product Cost per Unit < Required 1 Required 2 >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: David Spiceland, Wayne Thomas, Don Herrmann

4th edition

1259307956, 978-1259307959

More Books

Students also viewed these Accounting questions

Question

What are SMART measures?

Answered: 1 week ago

Question

Basic methods for evaluating capital budgeting decisions, LO.1

Answered: 1 week ago