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Two-Stage ABC for Manufacturing Merlot Company has determined its activity cost pools and cost drivers to be the following: Cost pools Setup Material handling
Two-Stage ABC for Manufacturing Merlot Company has determined its activity cost pools and cost drivers to be the following: Cost pools Setup Material handling Machine operation Packing $ 56,000 12,800 240,000 60,000 Total indirect manufacturing costs $368,800 H Cost drivers Setups Material moves Machine hours Packing orders 400 800 16,000 1,000 One product made by Merlot, metal casements, used the following activities during the period to produce 500 units: Setups Material moves 20 80 Machine hours 1,900 Packing orders 150 (a) Calculate the cost per unit of activity for each activity cost pool for Merlot company. Setup $ 2,800 x 1,280 x 28,500 x $ 9,000 x Material handling $ Machine operation $ Packing (b) Calculate the manufacturing overhead cost per metal casement manufactured during the period. Round your answer to the nearest cent. $ 83.16
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