Question
Woodland Industries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are
Woodland Industries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $18 per hour and that there were no beginning inventories. The following information was available for 2019, based on an expected production level of 50,000 units for the year, which will require 200,000 direct labor hours: Activity Cost Driver Budgeted Costs for 2019 Cost Driver Used as Allocation Base Cost Allocation Rate Materials handling $ 225,000 Number of parts used $ 0.18 per part Cutting and lathe work 1,875,000 Number of parts used 1.50 per part Assembly and inspection 4,400,000 Direct labor hours 22.00 per hour The following production, costs, and activities occurred during the month of July: Units Produced Direct Materials Costs Number of Parts Used Direct Labor Hours 3,400 $126,240 74,800 14,320 Required:
Required: a. Calculate the total manufacturing costs and the cost per unit of the windows produced during the month of July (using the activity-based costing approach). (Round "Cost per unit produced" to 2 decimal places.)
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