Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Information about a company's two products is found below. Direct Labor- Hours per Unit 0.70 0.30 Product A Product B Annual Production 14,000 units 47,000

image text in transcribed
image text in transcribed
image text in transcribed
Information about a company's two products is found below. Direct Labor- Hours per Unit 0.70 0.30 Product A Product B Annual Production 14,000 units 47,000 units Additional information about the company follows: a. Direct materials per unit is $24 for Product A and $10 for Product B. b. The direct labor wage rate is $13 per hour. c. Product A requires a special process that is not required for Product B. d. The following activity cost pools are used by the company's ABC system. Expected Activity Activity cost Pool (and Activity Mensure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Estimated Overhead Cost $ 25,740 $ 110,000 $ 406,300 Product Product 3 130 104 4,400 0 9,800 14,100 Total 234 4,400 23,900 Required: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Required: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each activity cost pool, calculate the activity rate. Activity Cost Pool Machine setups Special process General factory Activity Rate per setup per MH per DLH Required: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required 1 Required Using ABC costing, determine the total cost per unit of Product A and Product B. (Do not round in Round your answers to 2 decimal places.) Product A Product B Direct materials Direct labor Manufacturing overhead Unit product cost $ 0.00 $ 0.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Essentials For Hospitality Managers

Authors: Chris Guilding, Kate Mingjie Ji

4th Edition

1032024321, 9781032024325

More Books

Students also viewed these Accounting questions

Question

finding entry-level positions;

Answered: 1 week ago

Question

3. What would you do now if you were Mel Fisher?

Answered: 1 week ago

Question

14.3 Explain WHMISlegislation.

Answered: 1 week ago