Exercise 4-11 (Algo) Computing product cost per unit using plantwide method and activity-based costing LO P1,...

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Exercise 4-11 (Algo) Computing product cost per unit using plantwide method and activity-based costing LO P1, P3 Consider the following data for two products of Vigano Manufacturing. Activity Machine setup Parts handling Quality inspections. Total budgeted overhead Unit Information Units produced Budgeted Cost Activity Driver $ 15,000 (20 machine setups) 12,000 (16,000 parts) 18,000 (100 inspections) $ 45,000 Product A 1,500 units $25 per unit Product B 300 units $ 35 per unit Direct materials cost Direct labor cost Direct labor hours $ 45 per unit 2 per unit $ 55 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 3,750 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Actual Activity Usage Setups Parts Inspections Product A 8 setups 10,000 parts 40 inspections Product B 12 setups 6,000 parts 60 inspections Complete this question by entering your answers in the tabs below. Required 1 Required 2

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