Question
SCS Co. uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. SCS has provided their costing department the following
SCS Co. uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. SCS has provided their costing department the following information from this years budget relating to the production of these two products:
ABC | XYZ | |
---|---|---|
Units to be produced | 4,000 | 6,000 |
Machine-hours expected | 100 | 200 |
Direct labor-hours expected | 200 | 300 |
Materials handling (number of moves) | 60 | 70 |
Machine setups (number of setups) | 20 | 15 |
The following costs are expected to be incurred throughout the year, and are related to the cost drivers being measured:
Direct Labor Wages | $50,000 |
Materials handling | 4,000 |
Labor-related overhead | 42,000 |
Machine setups | 7,000 |
What is the expected overhead allocated per unit of product ABC? NOTE: Round all per-unit costs to nearest cent.
a. $10.30
b. $30.77
c. $84.00
d. $200.00
e. None of the above
What is the total expected overhead allocated to product XYZ? NOTE: Round all per-unit costs to nearest cent.
a. $22,646.20
b. $27,353.90
c. $28,200.00
d. $30,353.90
e. None of the above
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