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TTYYUA694 Corporation manufactures two products: A and B. The company's accounting records revealed the following per-unit costs for direct materials and direct labor: Product A
TTYYUA694 Corporation manufactures two products: A and B. The company's accounting records revealed the following per-unit costs for direct materials and direct labor: Product A 4,000 $40 Product B 5,000 $60 Production volume (units) Direct materials Direct labor 12.5 hours at $10/hour 2 hours at $10/hour $25 $20 TTYYUA694's management is considering a shift to activity-based costing and gathered the following manufacturing overhead data: (D30670) Activity Cost Pool Estimated OH Cost Setups $240,000 General factory $1,760,000 Machine processing $120,000 Activity cost driver Number of setups Direct labor hours Machine hours Expected Activity Product A 80 10,000 2,000 Product B 40 10,000 1,000 Q. Assuming that actual activity is the same as expected activity, what is TTYYUA694's unit product cost of Product B under activity: based costing? A $1
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