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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 Data table Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for ea Predetermined OH allocation rate Setup Machine maintenance Next, select the formula to allocate overhead (OH) costs. Allocated mfg. overhead costs 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 co the nearest cent.) Activity Setup Cost Allocation Base $ 105,000 Number of setups 60,000 Machine maintenance Total indirect manufacturing costs Number of machine hours $ 165,000 Product A Product B Total Direct labor hours 7,000 5,000 12,000 Number of setups 30 170 200 Number of machine hours 1,600 2,400 4,000 Print Done 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 B then compute the cost per unit for Product B. (Round the cost per unit to the nearest cent.) Setup Machine maintenance Total activity-based costs Number of units Activity-based cost per unit Product A Product B
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