This Question: 1 pt Godwin Company has identified the following activities relat

Question

This Question: 1 pt Godwin Company has identified the following activities related to indirect production costs a Activity Materials Handling $50,000 Cost Drivens 1,500 setup hours 12,500 pounds of materials 20,000 kilowatt hours Magi harasn $20.00 Activity Costs $180,000 ke Electric Power $20,000 Godwin Company has obtained the following data concerning two products Product AProduct B 4,000 20,000 $25,000 $20,000 120 Number of units produced Direct materials cost Direct labor cost $20,000 $12,000 100 Number of setup hours O A. $1.12 per unit O B. $2.25 per unit O C. $3.00 per unit O D. $3.37 per unit Click to select your answer This course (Acct 2270 V0652 2018wl (B) is based on Gopyright 2018 Pearson Education 8 6

Explanation / Answer

Answer is D. $ 3.37 per unit Explanation STATEMENT SHOWING ACTIVITY RATE OF ACTIVITY POOL Activity Total Expected Activity ACTIVITY COST POOL Measures Overheads Activity Rate machine setup Setup 180,000 1,500 120.00 Material Pounds 50,000 12,500 4.00 Power KW hours 20,000 20,000 1.00 Unit cost of Product B: Material 25000 Labour 20000 Overheads assigned Machine (120 setup @120) 14400 Material (1500 pounds @4) 6000 Power (2000 hours @1) 2000 Total cost 67400 Number of units 20000 Unit cost of Product B: 3.37

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