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Wilson Corporation, which uses an activity based costing system, manufactures two products - 20,000 units of Model AAA and 28,000 units of Model BBB.
Wilson Corporation, which uses an activity based costing system, manufactures two products - 20,000 units of Model AAA and 28,000 units of Model BBB. The following information applies to the company as a whole and for products Model AAA and Model BBB. Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine Hours $500,000 20,000 MHs Machine setups Number of setups $350,000 500 setups Production design Number of products $90,000 2 setups General factory Direct labor hours $930,000 60,000 DLHS Activity Measure Model AAA Model BBB Machining 4,000 16,000 Number of setups 300 200 Number of products 1 1 I Direct labor hours 18,000 42,000 Required A. What are the activity rates for machining, machine setups, production design, and general factory? B. How much total manufacturing cost would be assigned to Model AAA? C. What would be the manufacturing cost per unit be for Model AAA?
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