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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
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
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