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The Homer Corporation produces two products, and reports the following production and cost information for the most recent accounting period Product A Product B Number
The Homer Corporation produces two products, and reports the following production and cost information for the most recent accounting period Product A Product B Number of units produced 15,e80 units 2,500 units Direct labor $25 per direct labor hour (DLH) Direct materials cost 0.50 DLH per unit $ 2 per unit 2.00 DLH per unit $ 30 per unit Activity Driver Overhead costs Machine setup Quality inspections Total Total Cost $ 3,000. etups Product A 5 setups Product B 20 setups 35,000.ee inspections 6 inspections 140 inspections $38,000.00 Using activity-based costing for assigning overhead costs, the total product cost per unit for Product A is The Homer Corporation produces two products, and reports the following production and cost information for the most recent accounting period Product A Product B Number of units produced Direct labor$20 per direct labor hour (DLH) Direct materials cost 13,000 units 2,900 units 3.00 DLH per unit e.50 DLH per unit 3 per unit 40 per unit Activity Driver Total Cost $ 2,180.00 Product A 8 setups Product B 20 setups Overhead costs: Machine setup Quality inspections Total setups 43,500.e0 inspections 70 inspections 130 inspections $45,600.00 Using direct labor hours as the basis for assigning overhead costs, the total product cost per unit for Product B is Quantum Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Assembly Processing orders Inspection Overhead Cost $1,076,890 $ 39,711 $ 103,133 Total Activity 56, 500 machine hours 1,550 orders 1,510 inspection hours The company makes 290 units of product J71B a year, requiring a total of 930 machine-hours, 31 orders, and 17 inspection-hours per year. The product's direct materials cost is $27.00 per unit and its direct labor cost is $18 per unit. According to the activity-based costing system, the total overhead cost for producing the 290 units of the J71B product is
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