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Pursuant to the request, Jacob produced the following cost and driver information: Activity Expected Cost Driver Activity Capacity Other activities $2,000,000 Direct labor dollars $1,250,000
Pursuant to the request, Jacob produced the following cost and driver information:
Activity | Expected Cost | Driver | Activity Capacity | ||||||
Other activities | $2,000,000 | Direct labor dollars | $1,250,000 | ||||||
Moving materials | 900,000 | Number of moves | 18,000 | ||||||
Inspecting | 720,000 | Inspection hours | 24,000 | ||||||
Reworking | 380,000 | Rework hours | 3,800 | ||||||
Total overhead cost | $4,000,000 | ||||||||
Expected activity demands:
Regular Model | Deluxe Model | |||||
Units completed | 100,000 | 40,000 | ||||
Direct labor dollars | $875,000 | $375,000 | ||||
Number of moves | 7,200 | 10,800 | ||||
Inspection hours | 6,000 | 18,000 | ||||
Rework hours | 1,900 | 1,900 |
Required:
1. Compute two different unit costs for each of the Cable Service Divisions products. What managerial objectives are being served by these unit cost computations? Round the answers to two decimal places.
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