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Manoli Company has collected the following data for use in calculating product costs: Activity Data (expected and actual): Units produced Prime costs Direct labor hours
Manoli Company has collected the following data for use in calculating product costs: Activity Data (expected and actual): Units produced Prime costs Direct labor hours Machine hours Number of setups Inspection hours Number of moves Rug Cleaners 50,000 Sweepers Total 250,000 300,000 $200,000 $750,000 $950,000 10,000 40,000 50,000 20,000 10,000 30,000 25 75 100 1200 2,800 4,000 140 210 350 Departmental Data (expected and actual): Molding Assembly Total Direct labor hours: Rug cleaners 5,000 5,000 10,000 Sweepers 5.000 35.000 40.000 Totals 10,000 40,000 50,000 Machine hours; Rug cleaners 17,000 3,000 20,000 Sweepers 4.000 7.000 11.000 Totals 21,000 10,000 31,000 Overhead costs: Machining $120,000 $ 30,000 $150,000 Moving materials 40,000 30,000 70,000 Setting up 70,000 10,000 80,000 Inspecting products 20.000 30,000 50.000 Totals: $250,000 $100,000 $350,000 Actions Manoli Company uses departmental overhead rates: Molding uses machine hours and Assembly uses labor hours. What is the unit product cost for sweepers if departmental overhead rates are used? Oa. $3.50 Ob. $3.78
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