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LD Company assigns overhead costs to products using an activity based costing system. The information below relates to the activity based cost drivers and overhead
LD Company assigns overhead costs to products using an activity based costing system. The information below relates to the activity based cost drivers and overhead costs: Activity Expected cost Setting up equipment $57,000 Ordering costs $36,000 Machine costs $85,000 Receiving $40,000 Activity Activity based cost driver Setting up equipment 600 number of setups Ordering costs 1,800 number of orders Machine costs 3,400 machine hours Receiving 800 receiving hours LD Company produces two products that had the following costs and activities during the most recent year: Product A Product B Units produced 10,000 10,000 Direct material cost $65,400 $93,700 Direct labor cost $37,000 $42,000 Number of setups 360 280 Number of orders 650 1,230 Machine hours 1,640 1,560 Receiving hours 300 700 Calculate the cost per unit of Product A during the most recent year
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