Savod He! EyeGuard Equipment Inc. (EEI) manufactures protective eyewear for use in commercial and home applications. The product is also used by hunters, home woodworking hobbyists, and in other applications. The firm has two main product lines--the highest-quality product is called Safe-T, and a low-cost, value version is called Safe-V. Information on the factory conversion costs for EEl is as follows: Salaries Supplies Factory expense Factory Costs $ 841,000 141.000 $ 1,523,000 EEl uses ABC to determine the unit costs of its products. The firm uses resource consumption cost drivers based on rough estimates of the amount that each activity consumes, as shown below. EEl has four activities: job setup, assembly, inspecting and finishing and packaging Setup 15% 20 Salaries Supplies Factory expense Assembly 55% 60 80 Inspecting and Finishing 20% 20 20 Packaging 10% Total 100 100 100 The activity cost drivers for the two products are summarized below. Activities Setup Assembly Inspect and finishing Packaging Activity Driver Batch Units Finishing hours Packing hours Batches Units Finishing hours, per unit Packaging hours, per unit Materials per unit Safe.V 160 51,000 0.20 0.10 5 3.50 Safet 510 63,000 0.30 0.15 Batches Units Finishing hours, per unit Packaging hours, per unit Materials per unit Safe-V 160 51,009 0.20 8.10 $ 3.50 Safe-T 510 63,000 0.30 0.15 $ 6 Required: 1. Determine the amount of the cost pool for each of the four activities. 2. Determine the activity-driver rates for assigning factory costs to the two products. 3. Determine the activity-based unit cost for each of the products. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the amount of the cost pool for each of the four activities. Factory Costs $ Salaries Supplies Factory expense $ $ S 841,000 $ 141.000 $ 541.000 1.523,000 $ Setup Assembly Inspecting & Finishing Packaging 126,150 462,550 S 168 2007 s 84,100 28,200 $ 84,600 $ 28,200 0 0 S 432.800 $ 108,200 0 154 350 $ 979.950 $ 304.600 $ 84.100 Required 2 > Saved Batches Units Finishing hours, per unit Packaging hours, per unit Materials per unit Safe-V 160 51,000 0.20 0.10 $ 3.50 Safe-T 510 63,000 0.30 8.15 $ 6 Required: 1. Determine the amount of the cost pool for each of the four activities. 2. Determine the activity-driver rates for assigning factory costs to the two products, 3. Determine the activity-based unit cost for each of the products. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the activity-driver rates for assigning factory costs to the two products. (Round your answers to 2 decimal places.) Activity-Driver Rates S 230.37 $ 8.60 Setup Assembly Inspect and Finish Packaging Batches Units Finishing hours, per unit Packaging hours, per unit Materials per unit Safe-V 160 51,000 0.29 0.10 $ 3.50 Safe-T 519 63,000 0.30 0.15 $ 6 Required: 1. Determine the amount of the cost pool for each of the four activities. 2. Determine the activity-driver rates for assigning factory costs to the two products. 3. Determine the activity-based unit cost for each of the products. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the activity-based unit cost for each of the products. (Round your intermediate calculations and final answers to decimal places.) Safe.V Safe-T Activity-based cost per unit
