Two-Stage ABC for Manufacturing Merlot Company has determined its activity cost pools and cost drivers to be the following:

Cost Pools Setup $140,000

Material handling 32,000

Machine operation 600,000

Packing 60,000

Total indirect manufacturing costs $832,000

Cost drivers Setups 350

Material moves 640

Machine hours 20,000

Packing orders 1,200

One product made by Merlot, 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 for Merlot Company.

Setup costs Answer

Materials handling costs Answer

Machine operating costs Answer

Packing costs Answer

b. Calculate the manufacturing overhead cost per metal casement manufactured during the period. Round cost per unit to two decimal places, if needed.

Manufacturing Overhead Cost per Metal Casement Setups Answer

Material moves Answer Machine hours Answer

Packing orders Answer

Total manufacturing overhead Answer

Casements produced Answer

Cost per casement Answer