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requirement A requirement B Walton Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both
requirement A
requirement B
Walton Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quite different. The company has recently converted its cost accounting system to activity-based costing. The following are the cost data that Jane Price, the cost accountant, prepared for the third quarter of 2018 (during which Walton made 71,000 tennis racquets and 29,400 badminton racquets). Direct Cost Direct materials Direct labor Tennis Racquet (TR) $15.60 per unit 34.00 per unit Badminton Racquet (BR) $13.80 per unit 23.50 per unit Category Unit level Bateh level Product level Yacility level Estimated cost $ 783,000 305,000 155,000 620.000 $1,863,000 Cost Driver Number of inspection hours Number of setups Number of TV commercials Bumber of machine hours Amount of Cost Driver TRI 14,700 hours; DR: 12,300 hours TR: 81 setups BR1 41 setups TRI 4: BR: 1 TRI 30,200 hours DR 31,800 hours Total Inspectors are paid according to the number of actual hours worked, which is determined by the number of racquets inspected Engineers who set up equipment for both products are paid monthly salaries. TV commercial fees are paid at the beginning of the quarter. Facility level cost includes depreciation of all production equipment Required a. Compute the cost per unit for each product b. If management wants to price badminton racquets 30 percent above cost, what price should the company set? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required A Required B Compute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal places Cost per Unit Type of Product Tennis Racquet Badminton Racquet quarter. Facility-level cost includes depreciation of all production equipment. Lidl lees de pala at the beginning of Required a. Compute the cost per unit for each product. b. If management wants to price badminton racquets 30 percent above cost, what price should the company set? Complete this question by entering your answers in the tabs below. Required A Required B If management wants to price badminton racquets 30 percent above cost, what price should the company st? (Round Intermediate calculations and final answer to 2 decimal places.) Price of badminton racquets Step by Step Solution
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