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Process Assembly Finishing Support Activity Machining Setups Budgeted Cost $ 310,200 24,000 $ 334,200 Activity Cost Driver Machine hours (MH) Setups Budgeted Activity Usage
Process Assembly Finishing Support Activity Machining Setups Budgeted Cost $ 310,200 24,000 $ 334,200 Activity Cost Driver Machine hours (MH) Setups Budgeted Activity Usage 7,400 120 Inspecting $ 234,000 Inspections 760 Purchasing $ 138,000 Purchase orders 450 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Model X Model Z 1,800 3,600 2,200 5,200 Setups Inspections Purchase orders Selling price per unit 40 80 460 300 300 150 Per Unit Model X Model Z $ 415 Direct materials cost per unit 145 $ 395 105 Direct labor cost per unit 145 145 1. Compute the activity rate for each activity using activity-based costing. 2. Using activity-based costing, compute the overhead cost per unit for each model. 3. Compute the total product cost per unit for each model. 4. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).
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