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Darby Corp. is considering the use of activity-based costing. The following information is provided for the production of two product lines: (Click the icon to
Darby Corp. is considering the use of activity-based costing. The following information is provided for the production of two product lines: (Click the icon to view the information.) Darby plans to produce 375 units of Product A and 250 units of Product B. Compute the ABC indirect manufacturing cost per unit for each product. (Round your answers to the nearest cent.) Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity (Round your answers to the nearest cent) Setup Machine maintenance Next, select the formula to allocate overheed (OH) costs. Allocated mig overhead costs = Predetermined O allocation rate = Compute the total activity-based costs allocated to Product A, and then compute the cost per unit for Product A Finally, compute the total activity-based costs allocated to Product then compute the cost per unit for Product B (Round the cost per unit to the nearest cent) Product A Product B Setup Machine maintenance Total activity-based costs Number of units Activity based cost per unit Data table Activity Cost Allocation Base Setup $ 105,000 Number of selups 60,000 Machine maintenance. Number of machine hours Total indirect manufacturing costs $ 165,000 Product A Product B Total Direct labor hours Number of setups 7,000 30 5,000 12,000 170 200 Number of machine hours. 1,600 2,400 4,000
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