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Metlock Corp. has been making and selling a variety of tabletops for many years. L'Adell, product manager for two versions of the company's tabletop products,
Metlock Corp. has been making and selling a variety of tabletops for many years. L'Adell, product manager for two versions of the company's tabletop products, Marbled and Solid, was comparing sales volumes for these two types of products. While she knew Metlock's sales for the Solid tops had been declining, she was surprised to see the competitors' tabletop sales had been increasing. Was there something she didn't understand about her products' costs? Metlock Corp. had always allocated MOH costs to its products using one cost driver: units produced. It made sense, as both products were of comparable size and went through the same process-though they did take different amounts of time in each area. She looked closely at the key activities and likely cost drivers and gathered the following information. Calculate activity rates for MOH if Metlock uses the three key activities, along with each unique cost driver, as noted above. Calculate the MOH costs per unit for each product: Marbled and Solid. (Round answers to 2 decimal places, e.g. 15.25.)
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