Question
Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver Machine setup $ 22,000 (20 machine setups) Parts handling 17,600
Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver Machine setup $ 22,000 (20 machine setups) Parts handling 17,600 (16,000 parts) Quality inspections 26,400 (100 inspections) Total budgeted overhead $ 66,000 Unit Information Product A Product B Units produced 2,200 units 440 units Direct materials cost $ 32 per unit $ 42 per unit Direct labor cost $ 52 per unit $ 62 per unit Direct labor hours 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 5,500 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 UsageProduct AProduct BSetups8setups12setupsParts10,000parts6,000partsInspections40inspections60inspections
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started