Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Reward Corp. makes two products: C and D. The following data have been summarized: (Click the icon to view the data.) The company plans to
Reward Corp. makes two products: C and D. The following data have been summarized: (Click the icon to view the data.) The company plans to manufacture 250 units of each product Calculate the product cost per unit for Products C and D using activity-based costing. (Round your answers to the nearest cent.) Begin by selecting the formula to allocate overhead (OH) costs. Allocated mfg. Predetermined OH allocation rate Actual qty of the allocation base used-overhead costs x Compule the overtread costs allocated to Product C, and then compute the overhead cost per unit for Product C. Next, compute the overhead costs allocated to Product D then compute the overhead cost per unit for Product D. (Round the cost per unit to the nearest cent.) - X Product C Product D Data table Setup Product C Product D Machine maintenance Total overhead costs Number of units $ 800 $ 1,800 Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit 500 100 2 ? Overhead cost per unit Now calculate the product cost per unit for both products. (Enter your answers to the nearest cent.) Product C Product D Indirect manufacturing cost information includes the following: : Predetermined Overhead Activity Allocation Rate Product Setup $1,400 per setup 34 setups Machine maintenance 58 per MHP 1,300 MHP Direct materials cost per unit Direct labor cost per unit Product D 79 setups 3,750 MHT Indirect manufacturing cost per unit Total product cost per unit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started