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urgent help needed BILD-RITE Inc, makes two products and is currently using a predetermined overhead rate based on direct labour hours to apply overhead. The
urgent help needed
BILD-RITE Inc, makes two products and is currently using a predetermined overhead rate based on direct labour hours to apply overhead. The total estimated overhead cost is $864,000 for the coming year, Data for these products for the upcoming year is shown below. Direct Materials Cost per Unit Direct Labour Cost per Unit Direct Labour Hours per Unit Number of Units Produced Product $10.50 $0.00 0.6 30,000 Product $30.00 $4.50 0.3 190,000 These products do have some level of customization for each specific customer, Management is now considering the implementation of an activity-based costing system where 50% of the overhead would continue to be allocated on the basis of direct labour hours and the remainder allocated on the basis of engineering design time. The time is expected to be distributed as follows for the upcoming year Product A 4,500 Protect 4.500 Total 9,000 Engineering Design Time (in houn Calculate the total product cost per unit for product A using the proposed activity based costing system. (COSTA Enter your answer with no rounding Enter the dollar and decimal and cents. For example: 46.78 do not enter dollar signs Step by Step Solution
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