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Digital Storage Concept Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablets PCs, in a single
Digital Storage Concept Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablets PCs, in a single production department. The production department is estimated to require 4,000 direct labor hours. The total indirect labor is budgeted to be $537,600. Time records from indirect labor employees revealed that they spent 60% of their time setting up production runs and 40% of their time supporting actual production. Time records from Indirect labor employees revealed that they spent 60% of their time setting up production runs and 40% of their time supporting actual per The following information about cell phones and tablet PCs was determined from the corporate records: Number Direct of Labor Unita Setups Hours Cell phones 1,600 2,000 96,000 Thbilet PCS 800 2,000 96,000 Total 2,400 4,000 192,000 I required, round your answers to the nearest cent. Determine the indirect labor cost per unit allocated to cell phones and tablet PCs under a single plantwide factory overhead rate system using the direct la Cell phones per un Tablet PC 2.8 per unit b. Determine the budgeted activity costs and activity rates for the indirect latior under activity-based conting. Assure we activities-one for setup and the Budgeted Activity Cost Activity Rate Setup 215,040 107.52 Xpersatup Droduction 322,560 x 80.64 X per direct labor hour the activitat per for indirect to teach product under activity Cellphone Put Table dhe front from the to
Digital Storage Concept Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablets PCs, in a single production department. The production department is estimated to require 4,000 direct labor hours. The total indirect labor is budgeted to be $537,600. Time records from indirect labor employees revealed that they spent 60% of their time setting up production runs and 40% of their time supporting actual production.
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