Labor- Hours per 0.60 29,000 units 0.20 54,000 units about the company follows a
ID: 2408865 • Letter: L
Question
Labor- Hours per 0.60 29,000 units 0.20 54,000 units about the company follows a. Hubs require $29 in direct materials per unit, and Sprockets require $20. b. The direct labor wage rate is $11 per hour. c. Hubs are more complex to manufacture than Sprockets and they require special equipment d. The ABC system has the following activity cost pools: s 21,735 115 $ 152,000 3,800 114,600 NA setups (number of setups) 3,800 NA NA 2 Determine the unit product cost of each product according to the ABC system. (Round intermediate calculations and final answers to 2 decimal places.)Explanation / Answer
ABC Total cost Total cost driver Cost per driver Machine setups 21735 207 105.00 Special processing 152000 3800 40.00 Hubs Cost per driver Sprockets Machine setups 12075 105.00 9660 Special processing 152000 40.00 0 Total cost 164075 9660 Number of units 29000 54000 Overhead cost per unit 5.66 0.18 Hubs Sprockets Direct material 29.00 20.00 Direct Labor 6.60 2.20 Overhead cost per unit 5.66 0.18 Unit product cost 41.26 22.38
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