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V. Activitybased Costing and Management (HP 5) Answer here: Sheldon. Inc., manufactures two robots, Missy and George, and applies overhead on the basis of direct
V. Activitybased Costing and Management (HP 5) Answer here: Sheldon. Inc., manufactures two robots, Missy and George, and applies overhead on the basis of direct MiSSY George labor hours. Anticipated overhead and for the upcoming accounting period is $6,000.00 0. Information Overhead cost per unit 10 points about the company's products follows. Materials cost per unit 5 points 5 points Labor cost per unit Missy George Estimated Production volune (units) 5,000 7,500 Direct materials cost, per unit $ 375.00 $ 275.00 Direct labor per unit (hours) 20 15 Sheldon's labor cost per hour is $10 and his overhead of$6,000,000 can be identied with three major activities: order processing (2 5%), machine processing {60%). and product inspection (15%). These activities are driven by number of orders processed, machine hours worked, and inspection hours, respectively. Data relevant to these activities follow. Machine Orders Hours Inspection Processed Worked Hours Missy 170 152000 300 George 330 25,000 450 Total 500 402000 750 Required: Assuming use of activity-based costing, compute the unit manufacturing costs ofMissy and George if the expected manufacturing volume is atmined
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