Question
Given the following data, answer the questions below the table: -------------------------------------------------------------------------------------------------------------------------------- Data Deluxe Tourist Annual sales in units 2,000 10,000 Direct materials per unit $25
- Given the following data, answer the questions below the table:
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| Data | ||||
| Deluxe | Tourist | |||
| Annual sales in units | 2,000 | 10,000 | ||
| Direct materials per unit | $25 | $17 | ||
| Direct labor-hours per unit | 5 | 4 | ||
| Direct labor rate | $12 | per DLH | ||
| Estimated | ||||
| Overhead | Expected Activity | |||
| Activities and Activity Measures | Cost | Deluxe | Tourist | Total |
| Labor related (direct labor-hours) | $ 80,000 | 10,000 | 40,000 | 50,000 |
| Machine setups (setups) | 150,000 | 3,000 | 2,000 | 5,000 |
| Production orders (orders) | 70,000 | 230 | 270 | 500 |
| General factory (machine-hours) | 250,000 | 12,000 | 28,000 | 40,000 |
| $ 550,000 | ||||
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a) What is the product cost for the Deluxe model?
b) What is the Activity Based Costing unit product cost for the Deluxe model? (Round your final answer to 2 decimal places.)
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
15th edition
978-1118159644, 9781118562185, 1118159640, 1118147294, 978-1118147290
