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 0.60 0.29 Product A Product B Annual Production 11,000 units 50,000

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 0.60 0.29 Product A Product B Annual Production 11,000 units 50,000 units Additional information about the company follows: a. Direct materials per unit is $39 for Product A and $14 for Product B b. The direct labor wage rate is $18 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) 28,710 Special process (machine-hours) $ 144,000 4,800 4,500 General factory (Direct labor-hours) $ 149,400 6,609 10,000 16,600 $ 145 261 116 Required: 1. For each activity cost pool, calculate the activity rote 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 Der MH per DLH Required 2 > 2. Using ABC costing, determine the total cost per unit of Product A and Product Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using ABC costing, determine the total cost per unit of Product A and Product B. (Do n Round your answers to 2 decimal places.) Product A Product B Direct materials Direct labor Manufacturing overhead Unit product cost 3 Required 1

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

Cost Benefit Analysis With Reference To Environment And Ecology

Authors: James H. Meisel, K. Puttaswamaiah

1st Edition

1138521329, 978-1138521322

More Books

Students also viewed these Accounting questions