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Waterway Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers
Waterway Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Activity Pool Department Costs Cost Driver Binding $288,750 Number of units Printing 852,000 Machine hours Product design 264,000 Change orders General 1,055,250 None Total overhead costs $2,460,000 Other information is as follows: Tablets Books Units 62,500 20,000 Direct materials cost per unit $3.00 $12.00 Direct labor cost per unit $4.00 $8.00 Direct labor hours 30,000 19,200 Machine hours 140,000 144,000 Change orders 2,000 2,400 Determine the unit product cost for Tablets and Books using the activity-based costing system. (Round all rates and final answers to 2 decmial places, eg. 15.25.) Tablets Books $ $ Total unit cost
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