EyeGuard Equipment Incorporated (EEI) manufactures protective eyewear for use in commercial and home applications The product is also used by hunters, home woodworking hobbyists, and in other applications The firm has two main product linesthe highest quality product is called Safe T, and a low cost, value version is called Safe V Information on the factory conversion costs for EEI is as follows Factory Costs Salaries $ 852,000 Supplies 152,000 Factory expense 552,000 Total $ 1,556,000 EEI uses ABC to determine the unit costs of its products The firm uses resource consumption cost drivers based on rough estimates of the amount that each activity consumes, as shown below EEI has four activities job setup, assembly, inspecting and finishing, and packaging Setup Assembly Inspecting and Finishing Packaging Total Salaries 15 55 20 10 100 Supplies 20 60 20 100 Factory expense 80 20 100 The activity cost drivers for the two products are summarized below Activities Activity Driver Setup Batch Assembly Units Inspect and finishing Finishing hours Packaging Packing hours Safe V Safe T Batches 270 620 Units 62,000 74,000 Finishing hours, per unit 0 20 0 30 Packaging hours, per unit 0 10 0 15 Materials per unit $ 3 50 $ 6 00 Required 1 Determine the amount of the cost pool for each of the four activities 2 Determine the activity driver rates for assigning factory costs to the two products 3 Determine the activity based unit cost for each of the products Determine the amount of the cost pool for each of the four activities Determine the amount of the cost pool for each of the four activities Factory Costs Setup Assembly Inspecting Finishing Packaging Salaries Supplies Factory expense $0 $0 $0 $0 $0 Determine the activity driver rates for assigning factory costs to the two products (Round your answers to 2 decimal places ) Activity Driver Rates Setup Assembly Inspect and Finish Packaging Determine the activity based unit cost for each of the products (Round your intermediate calculations and final answers to 2 decimal places ) Safe V Safe T Activity based cost per unit

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 16, 2024

EyeGuard Equipment Incorporated (EEI) manufactures protective eyewear for use in commercial and home applications. The product is also used by hunters, home woodworking hobbyists, and

EyeGuard Equipment Incorporated (EEI) manufactures protective eyewear for use in commercial and home applications. The product is also used by hunters, home woodworking hobbyists, and in other applications. The firm has two main product linesthe highest-quality product is called Safe-T, and a low-cost, value version is called Safe-V. Information on the factory conversion costs for EEI is as follows:

	Factory Costs
Salaries	$ 852,000
Supplies	152,000
Factory expense	552,000
Total	$ 1,556,000

EEI uses ABC to determine the unit costs of its products. The firm uses resource consumption cost drivers based on rough estimates of the amount that each activity consumes, as shown below. EEI has four activities: job setup, assembly, inspecting and finishing, and packaging.