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Exercise 5-11A (Algo) Allocating facility-level costs and a product elimination decision LO 5-3 Benson Boards produces two kinds of skateboards. Selected unit data for
Exercise 5-11A (Algo) Allocating facility-level costs and a product elimination decision LO 5-3 Benson Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow: Production costs Basco Boards Shimano Boards Direct materials $ 24.30 $ 36.60 Direct labor $ 30.30 $ 51.60 Allocated overhead $ 15.15 Total units produced and sold 4,300 $ 367,650 $ 18.60 8,300 $ 1,020,900 Total sales revenue Benson allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $55,500 per quarter, to the two products equally. Required a. Compute the per-unit cost for each product. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. b. Compute the profit for each product. Basco Boards Shimano Boards a. Cost per unit b. Profit
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