Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Prince Rupert company manufactures product A. B, C and D. Data for the year ended Dec 31, 2021, is as follows. Product Units/ Production
Prince Rupert company manufactures product A. B, C and D. Data for the year ended Dec 31, 2021, is as follows. Product Units/ Production Cost of Direct labour Machine hours Production run material per hours required per unit unit ($) required per unit A 20 B 22 40 C 45 D 120 m 4 90 80 60 60 N S 1 8 19 6 70 7 5 23 12 65 9 3 Cost of Direct labor per hour: $6 Overhead costs for Prince Rupert company. I Set up cost Handling material cost Scheduling costs 5 12,000 $6,000 $14,000 i. ii. Using the peanut butter costing approach, calculate the cost per unit. (use Direct labor hours as a basis of allocation) Using ABC Costing, calculate the cost per unit. Please justify why you choose that allocation base. Show the difference of cost per unit using peanut butter and ABC costing
Step 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