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Two-Stage ABC for Manufacturing Meridian Company has determined its activity cost pools and cost drivers to be the following: Cost pools Setup $35,000 Material handling
Two-Stage ABC for Manufacturing Meridian Company has determined its activity cost pools and cost drivers to be the following:
Cost pools | |
---|---|
Setup | $35,000 |
Material handling | 12,800 |
Machine operation | 280,000 |
Packing | 30,000 |
Total indirect manufacturing costs | $357,800 |
Cost drivers | |
---|---|
Setups | 350 |
Material moves | 640 |
Machine hours | 20,000 |
Packing orders | 1,200 |
One product made by Meridian, metal casements, used the following activities during the period to produce 500 units:
Setups | 20 |
Material moves | 80 |
Machine hours | 1,900 |
Packing orders | 150 |
(a) Calculate the cost per unit of activity for each activity cost pool.
Setup | $Answer |
Material handling | $Answer |
Material operation | $Answer |
Packing | $Answer |
(b) Calculate the manufacturing overhead cost per metal casement manufactured during the period. Round your answer to the nearest cent. $Answer
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