Question
Two-Stage ABC for Manufacturing Thornton Company has determined its activity cost pools and cost drivers to be the following: Cost pools Setup $ 55,000 Material
Two-Stage ABC for Manufacturing Thornton Company has determined its activity cost pools and cost drivers to be the following: Cost pools Setup $ 55,000 Material handling 10,050 Machine operation 242,400 Packing 67,200 Total indirect manufacturing costs $ 374,650 Cost drivers Setups 550 Material moves 670 Machine hours 20,200 Packing orders 1,400 One product made by Thornton, metal casements, used the following activities during the period to produce 500 units: Setups 45 Material moves 112 Machine hours 2,400 Packing orders 195
(a) Calculate the cost per unit of activity for each activity cost pool for Thornton company. Setup 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.
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