calculate the product cost per unit for both products using activity based costing 645239
Using ABC to compute product costs per unit Jaunkas, Corp., manufactures mid fi and hi fi stereo receivers. The following data have been summarized:
|
|
Mid Fi |
Hi Fi |
|
Direct materials cost per unit |
$400 |
$1,300 |
|
Direct labor cost per unit |
400 |
300 |
|
Indirect manufacturing cost per unit |
? |
? |
Indirect manufacturing cost information includes the following:
|
Activity |
Allocation Rate |
Mid–Fi |
Hi–Fi |
|
Setup |
$1,700/per setup |
39 setups |
39 setups |
|
Inspections |
$ 400/per hour |
45 hours |
15 hours |
|
Machine maintenance |
$ 10/per machine hour |
1,900 machine hours |
1,200 machine hours |
The company plans to manufacture 200 units of the mid fi receivers and 250 units of the hi fi receivers.
Requirement
1. Calculate the product cost per unit for both products using activity based costing.