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Green Furniture (GF) manufactures a variety of furniture for household use and just two items for office use: desks and cabinets. The production process for

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Green Furniture (GF) manufactures a variety of furniture for household use and just two items for office use: desks and cabinets. The production process for desks and cabinets is similar, although machines must be retooled for each product. Both materials and labour costs are directly traceable to individual products; however, overhead is a common cost and allocated using direct labour-hours as the allocation base. GF's accountant is considering the use of activity-based costing (ABC) and has suggested evaluating the system by applying it to the two office use products (desks and cabinets). The following data are available for a typical quarter. Activity Usage hetivity Cost Pool Activity Base Activity Rate Parala Cabinet Parts receipts Number of parts $ 2.00 per part 1.400 parta 950 parte Machining Machine-hours $14.00 per machine-hour 140 machine-hours 210 machine-hours Assembly Units produced $ 2.00 per unit 950 unita 700 units Quality control 350 unite $ 3.00 per unit Unita tested 70 units $3,500 31,900 Direct materials $8,400 $3,400 Direet Labour Each product consumed 420 direct labour-hours. Required: 1. Determine the total manufacturing cost and cost per unit for each of the two product lines for the quarter, using activity based costing to allocate overhead costs. (Round "Cost per unit" answers to 2 decimal places) Dusters Cabinets Total manufacturing cost Cost per unit requirea: 1. Determine the total manufacturing cost and cost per unit for each of the two product lines for the quarter, using activity-based costing to allocate overhead costs. (Round "Cost per unit" answers to 2 decimal places.) Dunters Cabinets Total manufacturing cost Cost per unit 2. Redo the above using direct labour-hours as the allocation base. (Round "Cost per unit" answers to 2 decimal places.) Mops Dusters Total manufacturing cost Cost per unit

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