Hello question is attached, thanks. Required:a. Compute the unit costs for the two products V-1 and V-2 using the current costing system at Upriver (using machine hours as theallocation basis). (Do not round intermediate calculations. Round your answers to 2 decimal places.)b. Compute the unit costs for the two products V-1 and V-2 using the proposed ABC system at Upriver. (Do not round intermediatecalculations. Round your answers to 2 decimal places.)Unit CostV-1V-2Using current costing systemа.b.Using proposed ABC system Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the twoproducts follow.V-1V-2Units producedDirect materials cost per unitMachine hours per unitProduction runs per month10,0001,000$1248040Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead atthe plant follow.Machine depreciationSetup laborMaterial handling$36,00018,00014,400$68,400Total

Activity-based costing: Activity-based costing is the method of costing where the overhead cost…

a. Compute the unit costs for the two products V-1 and V-2 using the current costing system at Upriver (using machine hours as the allocation basis). (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Compute the unit costs for the two products V-1 and V-2 using the proposed ABC system at Upriver. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a. Compute the unit costs for the two products V-1 and V-2 using the current costing system at Upriver (using machine hours as the allocation basis). (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Compute the unit costs for the two products V-1 and V-2 using the proposed ABC system at Upriver. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 17E: Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the...

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