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I need the solution for part B. Required information Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an
I need the solution for part B.
Required information Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the two products follow. V-2 Units produced Direct materials cost per unit Machine hours per unit Production runs per month V-1 10,000 $ 2 1 80 1,000 $ 4 2 40 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 Material handling Total $ 96,000 42,000 19, 200 $157,200 Required: a. Compute the unit costs for the two products V-1 and V-2 using the current costing system at Upriver (using machine hours as the allocation basis). (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Compute the unit costs for the two products V-1 and V-2 using the proposed ABC system at Upriver. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Unit Cost V-1 V-2 a. $ 15.10 $ 30.20 Using current costing system Using proposed ABC system bStep by Step Solution
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