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Information about a company's two products is found below. Direct Labor- Hours per Unit 0.50 0.10 Product A Product B Annual Production 15,000 units 51,000
Information about a company's two products is found below. Direct Labor- Hours per Unit 0.50 0.10 Product A Product B Annual Production 15,000 units 51,000 units Additional information about the company follows: a. Direct materials per unit is $35 for Product A and $11 for Product B. b. The direct labor wage rate is $15 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 Measure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Estimated Overhead Cost $ 27,945 $ 225,500 $ 214,200 Product A Product B 115 92 4,100 0 7,500 5,100 Total 207 4,100 12,600 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 Required 2 For each activity cost pool, calculate the activity rate. Activity Cost Pool Activity Rate Machine setups per setup Special process General factory per MH per DLH Required 1 Required 2 Required 2 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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