wo-Stage ABC for Manufacturing

Columbus Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year:

Activity cost poolActivity costActivity cost driverMachine setup$600,00012,000 setup hoursMaterial handling120,0002,000 tons of materialsMachine operation500,00010,000 machine hours

The following data are for the production of single batches of two products, C23 Cams and U2 Shafts:

C23 CamsU2 ShaftsUnits produced500500Machine hours25Direct labor hours400200Direct labor cost$5,000$10,000Direct materials cost$30,000$20,000Tons of materials12.58Setup

Determine the unit costs of C23 Cams and U2 Shafts using ABC.

Two-Stage ABC for Manufacturing Merlot Company has determined its activity cost pools and cost drivers to be the following: Cost pools Setup 5 55.000 Material handllng _ 12.300 Machine operation _ 240.000 Packing . 00.000 Total Indirect manufacturing costs $ 368.800 Cost drivers Setups 400 Material moves B00 Machine hours 16.000 Packing orders ' 1.000 One product made by Merlot. metal casements. used the following activities during the period to produce 500 units: Setups 20 Material moves 30 Machine hours 1.900 - Packing orders 150 (a) Calculate the cost per unit of activity for each activity cost pool for Merlot company. Setup 5 6.400 at Material handling 1: 3.200 at Machine operation 5 45,600 3 Packing S 1500 it [0) Calculate the manufacturing overhead cost per metal casement manufactured during the period. Round your answer to the nearest cent. $ 125.4 8