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Fill in the blanks 2 40 - Units produced 10,000 1,000 Direct materials cost per unit 2.00 $ 4 Machine hours per unit Production runs
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2 40 - Units produced 10,000 1,000 Direct materials cost per unit 2.00 $ 4 Machine hours per unit Production runs per month Machine depreciation $ 36,000 Setup labor 18,000 Material handling 14,400 Total $ 68,400 Activity-Based Costir Upriver is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine hours for machine depreciation, production runs for setup labor, and direct material dollars for material handling. Determine the cost driver rate for each activity cost pool. Cost Driver Cost Driver Overhead Costs Cost Driver Volume Rate Machine $ 36,000 machine hours Setupl$ 18,000 Production run Materiall $ 14,400 direct material dollars Use the activity based costing method to determine the unit costs for each product. V-1 V-2 Direct materials Direct labor - included in overheadl Applied overhead Machine depreciation Setup labor Materials handling Total overhead costs Total costs Number of Units Unit CostStep by Step Solution
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