question 2

total maufacture cost:

cost per unit:

reen rurnture (Gr) manutactures a vanety or turniture tor nousenoid use and just two items tor omice use: desiks and cadinets. ine roduction process for desks and cabinets is similar, although machines must be retooled for each product. Both materials and labour Dsts are directly traceable to individual products; however, overhead is a common cost and allocated using direct labour-hours as the location base. GF's accountant is considering the use of activity-based costing (ABC) and has suggested evaluating the system by pplying it to the two office use products (desks and cabinets). The following data are available for a typical quartec. ach product consumed 660 direct labour-hours. required: Determine the total manufacturing cost and cost per unit for each of the two product lines for the quarter, using activity-based costing to allocate overhead costs. (Round "Cost per unit" answers to 2 decimal places.) 2. Redo the above using direct labourhours as the allocation base. (Round "Cost per unit" answers to 2 decimal places.)