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Information about a company's two products is found below. Direct Labor-Hours per Unit Annual Production Product A 0.50 19,000 units Product B 0.10 43,000 units

Information about a company's two products is found below.

Direct Labor-Hours per Unit Annual Production
Product A 0.50 19,000 units
Product B 0.10 43,000 units

Additional information about the company follows:

a. Direct materials per unit is $29 for Product A and $11 for Product B.

b. The direct labor wage rate is $16 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.

Estimated Expected Activity
Activity Cost Pool (and Activity Measure) Overhead Cost Product A Product B Total
Machine setups (number of setups) $ 18,900 100 80 180
Special process (machine-hours) $ 188,000 4,700 0 4,700
General factory (Direct labor-hours) $ 151,800 9,500 4,300 13,800

Required:

1. For each activity cost pool, calculate the activity rate.

  • Required 1
  • Required 2

For each activity cost pool, calculate the activity rate.

Activity Cost Pool Activity Rate
Machine setups per setup
Special process per MH
General factory per DLH

2. Using ABC costing, determine the total cost per unit of Product A and Product B.

Using ABC costing, determine the total cost per unit of Product A and Product B. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Product A Product B
Direct materials
Direct labor
Manufacturing overhead
Unit product cost

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