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Guided Sc YeXG Granite Company Us YGXXYe Granite Company X(g. David Mol Problem #11a Vid-saver, Inc. has five activity cost pools and two products (a
Guided Sc YeXG Granite Company Us YGXXYe Granite Company X(g. David Mol Problem #11a Vid-saver, Inc. has five activity cost pools and two products (a basic tape rewinder and a deluxe tape rewinder). information is presented below Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Equipment Inspection Orders Setups Machine hours 3,200,000 Labor Hours Inspections 1,800,000 1,200 1,000 300,000 300,000 1,100 800 800 200,000 700,000 $ 480,000 648,000 3,000,000 Instructions Compute the overhead cost per unit for each product using activity-based costing Production is 600,000 units of Basic and 200.000 units of Deluxe. Hint: Get the total of the drivers first. Example: there would be 2,000 orders (1,200 for Basic +800 for Deluxe), then calculate the overhead rates. Part 2: Using the numbers above, calculate the unit cost ofjob #222 which used $10,000 of DM, s6,000 of DL, 6 orders, 6 setups, 120 machine hours, 500 direct labor hours and 2 inspections to make 4.,000 units. (Hint: Charge them for each overhead line tem as well as DM and DL) Page 13
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