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SHOW WORK FOR THUMBS UP YOU HAVE TO DO IS COMPUTE THE OVERHEAD COST PER UNIT FOR EACH PRODUCT Product-Casting Accuracy, Plantside and Departmental Rates,
SHOW WORK FOR THUMBS UP
YOU HAVE TO DO IS COMPUTE THE OVERHEAD COST PER UNIT FOR EACH PRODUCT
Product-Casting Accuracy, Plantside and Departmental Rates, ABC Escuha company produces two type of calculators: scientific and business. Both products pass through two produang departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Product-Related Data Scientific Business Units produced per year 78,000 780,000 Prime costs $249,000 $2,490,000 Direct labor hours 102,500 1,025,000 Machine hours 48,700 487,000 Production runs 100 150 Inspection hours 2,000 3,000 Maintenance hours 2,250 9,000 Department Data Department 1 Department 2 Direct labor hours: Scientific calculator 77,700 24,800 Business calculator 142.500 881.500 Total 221,200 906,300 Machine hours: Scientific calculator 22,300 26,400 Business calculator 351.260 125.240 Total 383,560 152,140 Overhead costs: Setup costs $213,000 5213,000 Inspection costs 170,000 170,000 Power 251,000 145,000 Maintenance 187,000 251,750 Total $821,000 $782,750 3. Compute the overhead cost per unit for each product using activity-based costing. Round your calculations and answers to the nearest cent. Overhead Cost Scientific X per unit Business X per unit Step by Step Solution
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