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A company makes two products - Widgets and Spindles. Data regarding the two products follow: Direct Labor- Hours Widgets Spindles per Unit 0.90 0.50 Annual
A company makes two products - Widgets and Spindles. Data regarding the two products follow: Direct Labor- Hours Widgets Spindles per Unit 0.90 0.50 Annual Production 18,000 units 43,000 units Additional information about the company follows: a. Widgets require $23 in direct materials per unit, and Spindles require $14. b. The direct labor wage rate is $17 per hour. c. Widgets are more complex to manufacture than Spindles and they require special processing. d. The company's activity-based absorption costing system has the following activity cost pools: Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special processing (machine-hours) General factory (Direct labor-hours) Estimated Overhead Cost $ 25,920 $ 123,000 $ 339,300 Expected Activity Widgets Spindles Total 120 96 216 4,100 4,100 16,200 21,500 37,700 Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the unit product cost for Widgets and Spindles using activity-based absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH per DLH Required 1 Required 2 > Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the unit product cost for Widgets and Spindles using activity-based absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the unit product cost for Widgets and Spindles using activity-based absorption costing. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Widgets Spindles Direct materials Direct labor Manufacturing overhead Unit product cost $ 0.00 $ 0.00
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