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Pronghorn Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below: Est. Use
Pronghorn Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below:
Est. Use of Cost Drivers
Activity Cost Pools
Cost Driver
Est. Overhead
Budget
Deluxe
Ordering and Receiving
Orders
$ 143,000
600
400
Machine Setup
Setups
309,600
500
400
Machining
Machine hours
1,022,000
150,000
100,000
Assembly
Parts
1,622,000
1,200,000
800,000
Inspection
Inspections
313,000
550
450
Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round per machine hour and per part values to 3 decimal places, e.g. 52.711. Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost assigned to 0 decimal places, e.g. 2,500.)
Overhead cost per unit
Budget
$ enter a dollar amount per unit rounded to 2 decimal places
per unit
Deluxe
$ enter a dollar amount per unit rounded to 2 decimal places
per unit
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