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Jamesway Corporation makes two types of replacement fittings for heavy construction equipment screws and bolts. Data regarding the two products follow: Direct Labour - Hours
Jamesway Corporation makes two types of replacement fittings for heavy construction equipmentscrews and bolts. Data regarding the two products follow:
Direct LabourHours per Unit Annual Production
Screws units
Bolts units
Additional information about the company follows:
Screws require $ in direct materials per unit, and bolts require $
The direct labour wage rate is $ per hour.
Screws are more complex to manufacture than bolts, and they require special equipment.
The ABC system has the following activity cost pools:
Activity Cost Pool Activity Measure Estimated Overhead Cost Activity
Screws Bolts Total
Machine setups Number of setups $
Special processing Machinehours $
General factory Direct labourhours $
Required:
Compute the activity rate for each activity cost pool.
Determine the unit cost of each product according to the ABC system, including direct materials and direct labour. Round your answers to decimal places.
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