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S6 R . one of the products Tommy Co manufactures has the following info available: Number of units sold 12.000 $25 Selling price per unit.....
S6 R . one of the products Tommy Co manufactures has the following info available: Number of units sold 12.000 $25 Selling price per unit..... Direct material cost per unit $10 Direct labor cost per unit Machine hours per unit............ 0.5 Hour Data relating to the company's activity cost pools for the current year are given below Activity Cost Pool Purchase orders............ Machine-hours............. Customer services.......... Other Total..... Total Cost Total Activity 40.000 100 orders 50.000 10.000 MHs 30.000 50 Customers 80.000 NA $200,000 Product K-9 Activity 40 orders 6,000 MHS NIA NIA The other activity consists of the costs of idle capacity and organization-sustaining costs. One particular customer, Griffin Co.. made 15 orders, totaling 4,000 units of Product K-9 Required: a. Compute the activity rates (i.e., cost per unit of activity) for the activity cost pools. Round off all calculations to the nearest whole cent. (5 points) b. Using the activity-based costing system, compute the amount of product margin for Product K-9. (4 points) c. Using the activity-based costing system, compute the amount of customer margin for Griffin Co. (4 points)
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