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Using ABC to compute product costs per unit Spectrum Corp. makes two products: Cand D. The following data have been summarized: The company plans to
Using ABC to compute product costs per unit Spectrum Corp. makes two products: Cand D. The following data have been summarized: The company plans to manufacture 250 units of each product. Calculate the product cost per unit for Products Cand D using activity-based costing. Product C Product D Direct materials cost per unit $ 600 $ 2,400 300 200 Direct labor cost per unit Indirect manufacturing cost per unit ? ? Indirect manufacturing cost information includes the following: Predetermined Overhead Allocation Rate Activity Product C Product D Setup $ 1,500 per setup 35 setups 76 setups Machine maintenance $ 10 per MHT 1,500 MHT 3,700 MHT
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