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Two-Stage ABC for Manufacturing Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for
Two-Stage ABC for Manufacturing Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year:
Activity Cost Pool | Activity Cost | Activity Cost Driver | |
---|---|---|---|
Machine setup | $600,000 | 12,000 setup hours | |
Material handling | 120,000 | 2,000 material moves | |
Machine operation | 500,000 | 10,000 machine hours |
The following data are for the production of single batches of two products, C23 Cams and U2 Shafts during the month of August:
C23 Cams | U2 Shafts | |
---|---|---|
Units produced | 500 | 300 |
Machine hours | 4 | 5 |
Direct labor hours | 200 | 400 |
Direct labor cost | $5,000 | $10,000 |
Direct materials cost | $30,000 | $20,000 |
Tons of materials | 13 | 8 |
Setup hours | 3 | 7 |
Determine the unit costs of C23 Cams and U2 Shafts using ABC. Round cost per gallon to two decimal places.
Product Costs | ||
---|---|---|
C23 Cams | U2 Shafts | |
Direct materials | Answer | Answer |
Direct labor | Answer | Answer |
Manufacturing overhead: | ||
Machine setups | Answer | Answer |
Material handling | Answer | Answer |
Machine operation | Answer | Answer |
Total job costs | Answer | Answer |
Units produced | Answer | Answer |
Cost per unit produced | Answer | Answer |
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