Question
Just need help with the very last part determining total activity based costs allocated to product A and B! Corp. is considering the use of
Just need help with the very last part determining total activity based costs allocated to product A and B!
Corp. is considering the use of activity-based costing. The following information is provided for the production of two product lines: (see image attached) plans to produce units of Product A and units of Product B. Compute the ABC indirect manufacturing cost per unit for each product. (Round your answers to the nearest cent.) Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Round your answers to the nearest cent.)
Predetermined OH Estimated overhead costs Estimated qty of the allocation base = allocation rate
Setup $100,000 200 = $500.00
Machine maintenance $45,000 4,000 = $11.25
Next, select the formula to allocate overhead (OH) costs.
answer: Allocated mfg. Actual qty of the allocation base used Predetermined OH allocation rate = overhead costs
Compute the total activity-based costs allocated to Product A, and then compute the cost per unit for Product A. Finally, compute the total activity-based costs allocated to Product B then compute the cost per unit for Product B. (Round the cost per unit to the nearest cent.)
X . i Data Table Activity Setup Cost Allocation Base $ 100,000 Number of setups 45,000 Number of machine hours $ 145,000 Machine maintenance Total indirect manufacturing costs Product A Total Product B 7,000 Direct labor hours 5,000 12,000 Number of setups 20 180 200 Number of machine hours 800 3,200 4,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started