Question
Jasmine Electronics Company produces two products, Resistors and Transistors in a small manufacturing plant. During June, Jasmine Electronics produced 100 units of Resistors and 100
Jasmine Electronics Company produces two products, Resistors and Transistors in a small manufacturing plant. During June, Jasmine Electronics produced 100 units of Resistors and 100 units of Transistors incurring a total manufacturing overhead cost of $21,000. Assume Jasmine Electronics uses Activity Based Costing and that its total manufacturing overhead costs of $21,000 were assigned to the following: ABC cost pools: Material inspections & preparation ($10,000) $ 10 per pound of raw materials Material moves ($2,000) $ 25 per move Machine setups ($3,000) $ 150 per setup Machine operations ($6,000) $ 40 per machine hour Resistors and Transistors used the following quantities of the four activity drivers: Resistors Transistors Pounds of raw materials 500 500 Material moves 50 30 Setups 12 8 Machine hours 90 60 Compute the overhead costs assigned to each unit of Resistors and Transistors using Activity based costing. Make sure to show your work.
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