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Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost per unit Rounded Edge $ 39,000 13,000 45,600 $ 97,600
Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost per unit Rounded Edge $ 39,000 13,000 45,600 $ 97,600 13,000 $ 7.51 Squared Edge $ 51,000 34,000 86,400 $ 171,400 17,000 $ 10.08 Total $ 90,000 47,000 132,000 $ 269,000 Northwest's controller wants to apply activity-based costing to allocate the $132,000 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected.
Northwest's controller wants to apply activity-based costing to allocate the $132,000 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Required: 1. Compute the activity rate for each activity using activity-based costing. 2. Compute overhead cost per unit for each of the two products using activity-based costing. 3. Determine product cost per unit for each of the two products using activity-based costing. Activity Usage \begin{tabular}{crr} \hline Rounded Edge & Squared Edge & Total \\ 184 orders & 506 orders & 690 orders \\ 500 hours & 1,500 hours & 2,000 hours \\ 40 setups & 210 setups & 250 setups \end{tabular}
Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost per unit Rounded Edge $ 39,000 13,000 45,600 $ 97,600 13,000 $ 7.51 Squared Edge $ 51,000 34,000 86,400 $ 171,400 17,000 $ 10.08 Total $ 90,000 47,000 132,000 $ 269,000 Northwest's controller wants to apply activity-based costing to allocate the $132,000 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected.
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