SELF-STUDY PROBLEMS SELF-STUDY PROBLEM 1 Compute unit ABC costs The Fallon Company manufactures a variety of handerafted bed frames. The company's manufacturing activities and related data for the current year follow. CHAPTER 12 Activity analysis; costing and management 379 John Wieys Sonis Australio, Ltd Not for resale or distr buton. Any unauthorised distgbution or use will result in legal action. Two styles of bed frames were produced in July: a wood frame with fewer parts, and a metal frame that required no staining activities. Direct labour is paid $25 per hour. Their quantities, direct material costs and other data follow: Required (a) Compute the ABC cost allocation rates and then calculate total manufacturing costs and unit costs of the wood and metal frames. (b) Non-manufacturing activities, such as product design, were analysed and allocated to the wood frame at $10 each and the metal frame at $15 each. Similar analyses were conducted of other non-manufacturing activities, such as distribution, marketing and customer service. The support costs allocated were $50 per wood frame and $80 per metal frame. Calculate the product cost per unit including the nonmanufacturing costs. SOLUTION TO SELF-STUDY PROBLEM 1