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Total Indirect Costs for the Quarter: Assembly $ 630,000 Soldering $ 270,000 Inspection $160,000 PCB124 PCB136 Direct costs (materials, labor) $162,400 $ 178,240 Machine hours
| Total Indirect Costs for the Quarter: | |||||||
| Assembly | $ 630,000 | ||||||
| Soldering | $ 270,000 | ||||||
| Inspection | $160,000 | ||||||
| PCB124 | PCB136 | ||||||
| Direct costs (materials, labor) | $162,400 | $ 178,240 | |||||
| Machine hours (assembly) | $ 480 | $ 1,080 | |||||
| Number of units produced (soldering) | $ 6,000 | $ 4,000 | |||||
| Testing hours (inspection) | $ 6,000 | $ 8,000 | |||||
| a. | What is the total manufacturing cost per unit using traditional costing for PCB124? For PCB136? Use machine hours as the cost-allocation base. | ||||||
| b. | What is the total manufacturing cost per unit using activity-based costing for PCB124? For PCB136? | ||||||
| c. | What conclusions can be drawn from your spreadsheet results? | ||||||
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