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Heidelberg Fabrication manufactures two products, G-09 and G-35 Units produced Direct materials cost pen unit Machine-hours per unit Production runs per quarter G-09 19,800 4
Heidelberg Fabrication manufactures two products, G-09 and G-35
Units produced
Direct materials cost pen unit
Machine-hours per unit
Production runs per quarter
G-09
19,800
4
144
G-35
3,960
$ 19
7
72
Production at the plant is automated and any labor cost is included in overhead
Data on manufacturing overhead at the
plant follow:
Machine depreciation
Setup Labor
Materials handling
Total
$ 106,920
53,460
42,768
$ 203,148
Required:
- Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours as the allocation basis).
- Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg
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