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S Davis, Managerial Accounting, 2e MANAGERIAL ACC CALCULATOR MESSAGE MY INSTRUCTOR STANDARD VIEW PRINTER VERSION BAC Problem 7-22 Claire Company produces Tablets and Books. Total
S Davis, Managerial Accounting, 2e MANAGERIAL ACC CALCULATOR MESSAGE MY INSTRUCTOR STANDARD VIEW PRINTER VERSION BAC Problem 7-22 Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Department Activity Pool Cost Driver Number of units Machine hours Change orders None Costs Binding Printing Product design General $243,300 799,070 193,900 639,810 Total overhead costs $1,886,030 Other information is as follows: Tablets Books 62,900 20,200 $10 Units Direct materials cost per unit DIrect labor cost per unlt Direct labor hours Machine hours Change orders $3 25,100 16,500 126,000 120,000 2,000 1,460 Claire's managers have gathered the following information about selling and administrative costs Total Cost $307,708 174,790 171,340 5653,838 Activity Pool Cost Driver Shipping Advertising Commissions Total selling and administrative costs Pounds shipped Number of malllngs 5% of sales price Weight Advertising mailings Sales commlsslon Selling price per unit Tablets 31,260 pounds 126,000 5% of sales price S32 Books 40,300 pounds 101,000 5% of sales price $70 Using the information given here, calculate the product margin per unit for Tablets and Books using the traditional costing system. (Round all rates and final answers to 2 decmial plac 15.25.)
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