Question
I got question 1 right i just need help with question 2 Maker Company has identified the following overhead activities, costs, and activity drivers for
I got question 1 right i just need help with question 2
Maker Company has identified the following overhead activities, costs, and activity drivers for the coming year:
Activity | Expected Cost | Activity Driver | Activity Capacity |
Setting up equipment | $515,970 | Number of setups | 630 |
Ordering costs | 368,000 | Number of orders | 18,400 |
Machine costs | 852,000 | Machine hours | 42,600 |
Receiving | 364,000 | Receiving hours | 10,400 |
Maker produces two models of dishwashers with the following expected prime costs and activity demands:
Model A | Model B | |
Direct materials | $645,000 | $801,000 |
Direct labor | 464,000 | 478,000 |
Units completed | 15,000 | 7,600 |
Direct labor hours | 5,800 | 2,000 |
Number of setups | 400 | 230 |
Number of orders | 6,300 | 12,100 |
Machine hours | 23,700 | 18,900 |
Receiving hours | 3,500 | 6,900 |
The company's normal activity is 7,800 direct labor hours.
Required:
1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent.
model a = 178.04
model b=239.14
2. Determine the unit cost for each model using the four activity drivers. round to nearest cent
model a =
model b=
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