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Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units
Consider the following data for two products of Vigano Manufacturing. Budgeted Cost Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Actual Activity Usage Setups Parts Inspections Activity Driver $ 27,000 (20 machine setups) 21,600 (16,000 parts) 32,400 (100 inspections) $ 81,000 Product A 1. Using a plantwide overhead rate based on 6,750 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. Required 1 Required 2 2,700 units $ 37 per unit $ 57 per unit 2 per unit Product B 540 units $ 47 per unit $ 67 per unit 2.50 per unit 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. Using a plantwide overhead rate based on 6,750 direct labor hours, compute the total product cost per unit for each product.
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