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Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver Machine setup $ 1 1 , 0 0 0 (

Consider the following data for two products of Vigano Manufacturing.
Activity Budgeted Cost Activity Driver
Machine setup $ 11,000(20 machine setups)
Parts handling 8,800(16,000 parts)
Quality inspections 13,200(100 inspections)
Total budgeted overhead $ 33,000
Unit Information Product A Product B
Units produced 1,100 units 220 units
Direct materials cost $ 21 per unit $ 31 per unit
Direct labor cost $ 41 per unit $ 51 per unit
Direct labor hours 2 per unit 2.50 per unit
Using a plantwide overhead rate based on 2,750 direct labor hours, compute the total product cost per unit for each product.
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 Product B
Setups 8 setups 12 setups
Parts 10,000 parts 6,000 parts
Inspections 40 inspections 60 inspections
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