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Jamesway Corporation makes two types of replacement fittings for heavy construction equipmentscrews and bolts. Data regarding the two products follow: Direct Labour- Hours per Unit
Jamesway Corporation makes two types of replacement fittings for heavy construction equipmentscrews and bolts. Data regarding the two products follow: Direct Labour- Hours per Unit Annual Production Screws 6.26 46,666 units Bolts 6.16 66,666 units Additional information about the company follows: a. Screws require $9.00 in direct materials per unit, and bolts require $7.00. b. The direct labour wage rate is $50 per hour. c. Screws are more complex to manufacture than bolts, and they require special equipment. d. The ABC system has the following activity cost pools: Estimated ACtiVit)' Activity Cost Pool Activity Measure Overhead Cost Screws Bolts Total Machine setups Number of setups $ 36,666 86 46 126 Special processing Machine-hours $246,666 4,666 6 4,666 General factory Direct labour-hours $636,666 }',666 14,666 21,666 Required 1. Compute the activity rate for each activity cost pool. Required 1. Compute the activity rate for each activity cost pool. Machine setups per setup per MH per DLH Special processing General factory 2. Determine the unit cost of each product according to the ABC system. including direct materials and direct labour. (Round your answers to 2 decimal places} Direct materials Direct labour Overhead Unit cost
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