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Direct Labor-Hours per Unit 0.90 0.30 Annual Production 29,000 48,000 Product A Product B units units Additional information about the company follows: a Product A

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Direct Labor-Hours per Unit 0.90 0.30 Annual Production 29,000 48,000 Product A Product B units units Additional information about the company follows: a Product A require $32 in direct materials per unit and Product B require $16 per unit. b. The direct labor wage rate is $10 per hour c. Product A require special equipment and are more complex to manufacture than Product B. d. The ABC (activity-based costing) system has the following activity cost pools: Estimated Activity Activity Cost Pool (Activity Measure) Overhead Cost Product A Product B Machine setups (number of setups) $15,300 90 80 Special processing (machine hours) $128.000 3,200 0 General factory (organization-sustaining) $103.100 NA NA (There is no activity rate for the General Factory activity, because it is an organization- sustaining activity. Organization-sustaining costs are not allocated to products.) Total 170 3,200 NA it's safer to stay in Protected View Required: Enable Editing 1. Compute the activity rate for each of the following activity cost pools (Complete the worksheet below.) Activity Cost Pool @) Estimated Overhead Cost (6) Expected Activity (c) Activity Rate Machine setups setups per setup Special processing per MH I 2. Determine the unit product cost of Product According to the ABC wystem (Complete the worksheets below. Round final answers to 2 decimal places) Overhead (ABC) Costisained to Product A as follows Activity Cost Pool (a) Activity Rate (b) Activity (c) ABC Cost Machine setup pers sto Special processing MES Total Unit product cost of Product A according to the ABC Product (5) safer to stay in Protected View Enable Editing 2. Determine the unit product cost of Product A according to the ABC system. (Complete the worksheets below. Round final answers to 2 decimal plaas.) Overhead (ABC) cost is assigued to Product A as follows: Activity Cost Pool (a) Activity Rate (6) Activity ( ) ABC Cost Machine setups per setup setups Special processing per MH MHS Total Unit product cost of Product A according to the ABC system: Product A (S) Direct materials (per unit) Direct labor (per unit): Overhead (per unit) Unit (product) cost

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