Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Drilling Company uses activity-based costing and provides this information: Driver Manufacturing Activity Cost Driver Rate Materials handling Number of parts $ 0.8 Machinery Number of

image text in transcribedimage text in transcribed
Drilling Company uses activity-based costing and provides this information: Driver Manufacturing Activity Cost Driver Rate Materials handling Number of parts $ 0.8 Machinery Number of machine hours 52 Assembly Number of parts 2.90 Inspection Number of finished units 31 [ Drilling hasjust completed 81 units of a component for a customer. Each unit required 101 parts and 3.05 machine hours The prime cost is $1,310 per nished unit. All other manufacturing costs are classified as manufacturing overhead. Required: 1. Compute the total manufacturing costs and the unit costs of the 81 unitsjust completed using ABC costing. 2. In addition to the manufacturing costs, the rm has determined that the total cost of upstream activities, including research and development and product design, is $181 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $301 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstream activities Also compute the relative proportion of each main cost category; Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the total manufacturing costs and the unit costs of the 81 units just completed using ABC costing. (Round your intermediate and nal answers to 2 decimal places.) Total manufacturing cost Manufacturing cost per unit Required 1 Required 2 In addition to the manufacturing costs, the rm has determined that the total cost of upstream activities, including research and development and product design, is $181 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $301 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstream activities. Also compute the relative proportion of each main cost category. (Round your answers to 2 decimal places.) Show IeSSA Computation of full cost: Upstream activity costs Manufacturing costs Downstream activity costs Full product cost per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting For Managers

Authors: Eric Noreen

1st Edition

73526975, 978-0073526973

More Books

Students also viewed these Accounting questions

Question

What are the advantages of payback? AppendixLO1

Answered: 1 week ago

Question

3. To retrieve information from memory.

Answered: 1 week ago

Question

2. Value-oriented information and

Answered: 1 week ago

Question

1. Empirical or factual information,

Answered: 1 week ago