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Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has
Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $ per unit, while product B has been assigned $ per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Activity Costs Cost Drivers Activity Driver Consumption Machine setup $ Setup hours Materials handling Pounds of materials Electric power Kilowatthours The following cost information pertains to the production of A and B just two of Hakara's many products: A B Number of units produced Direct materials cost $ $ Direct labor cost $ $ Number of setup hours Pounds of materials used Kilowatthours Required: Use activitybased costing to determine a unit cost for each product. Round your final answers to decimal places.
Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $ per unit, while product B has been assigned $ per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information:
Cost Pools Activity Costs Cost Drivers Activity Driver Consumption
Machine setup $ Setup hours
Materials handling Pounds of materials
Electric power Kilowatthours
The following cost information pertains to the production of A and B just two of Hakara's many products:
A B
Number of units produced
Direct materials cost $ $
Direct labor cost $ $
Number of setup hours
Pounds of materials used
Kilowatthours
Required:
Use activitybased costing to determine a unit cost for each product. Round your final answers to decimal places.
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