Question 2

Information about a company's two products is found below. Direct Labor Hours per Unit 0.50 0.10 Product A Product B Annual Production 12,000 units 45,000 units Additional information about the company follows: a. Direct materials per unit is $21 for Product A and $19 for Product B. b. The direct labor wage rate is $16 per hour. c. Product A requires a special process that is not required for Product B. d. The following activity cost pools are used by the company's ABC system. Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Estimated Expected Activity Overhead Cost Product A Product B Total $ 24,300 100 80 180 $ 300,000 5,000 e 5,000 $ 210,000 6,000 4,500 10,500 Required: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. 80 Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) $ 24,300 $ 300,000 $ 219,800 100 5,000 6,000 180 5,000 10,500 4,500 Required: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each activity cost pool, calculate the activity rate. Activity Rate per setup Activity Cost Pool Machine setups Special process General factory per MH per DLH BON Required 2 > 30 Machine setups (number of setups ) Special process (machine-hours) General factory (Direct labor-hours) 5 24,300 $ 300,000 $ 210,000 100 5,000 6,000 180 5,000 10,500 4,500 Required: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using ABC costing, determine the total cost per unit of Product A and Product B. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Product A Product B Direct materials Direct labor Manufacturing overhead Unit product cost