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I QUESTION 4 (20 marks) Sander Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here
I QUESTION 4 (20 marks) Sander Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here Mathematical Financial Annual production in units 45,000 90,000 Direct material costs $180,000 $360,000 Direct manufacturing labour costs $ 90,000 $180,000 Direct manufacturing labour-hours 4,500 9.000 Machine-hours 30.000 50,000 Number of production runs 45 45 Inspection hours 1,200 Total manufacturing overhead costs are as follows: Total Machining costs $360,000 Setup costs 108,000 Inspection costs 117.000 600 REQUIRED 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. 2. Compute the manufacturing cost per unit for each product. 3. How might Sander's managers use the new cost information from its activity-based costing system to better manage its business
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