Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Heldelberg Fabrication manufactures two products, G-09 and G-35: G-09 6-35 Units produced 18,900 3,780 Direct materials cost per unit $ 7 Machine-hours per unit
Heldelberg Fabrication manufactures two products, G-09 and G-35: G-09 6-35 Units produced 18,900 3,780 Direct materials cost per unit $ 7 Machine-hours per unit 4 $ 19 7 Production runs per quarter 144 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 $ 102,060 51,030 40,824 $193,914 Required: a. 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). b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a. Using current costing system b: Using proposed ABC system Unit Cost G-09 G-35
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started