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Hours per Unit 0.60 Annual Production Product A Product B 23,000 units 44,000 units 0.20 Additional Information about the company follows: a. Direct materials per unit is $32 for Product A and $13 for Product B. b. The direct labor wage rate is $11 per hour. c. Product A requires a special process that is not required for Product B. d. The following activity cost pools are used by the company's ABC system. Expected Activity Product B Estimated Activity cost Pool (and Activity Measure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Overhead Cost Product A 16,065 $ 135,000 $ 226,000 Total 85 68 153 4,500 13,800 4,500 22,600 8,see Required: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using ABC costing, determine the total cost per unit of Product A and Product B. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Product A Product B Direct materials Direct labor Manufacturing overhead Unit product cost < Required 1 Required 2 >

Hours per Unit 0.60 Annual Production Product A Product B 23,000 units 44,000 units 0.20 Additional Information about the company follows: a. Direct materials per unit is $32 for Product A and $13 for Product B. b. The direct labor wage rate is $11 per hour. c. Product A requires a special process that is not required for Product B. d. The following activity cost pools are used by the company's ABC system. Expected Activity Product B Estimated Activity cost Pool (and Activity Measure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Overhead Cost Product A 16,065 $ 135,000 $ 226,000 Total 85 68 153 4,500 13,800 4,500 22,600 8,see Required: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using ABC costing, determine the total cost per unit of Product A and Product B. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Product A Product B Direct materials Direct labor Manufacturing overhead Unit product cost < Required 1 Required 2 >

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Information about a company's two products Is found below. Direct Labor- Hours per Unit Annual Production 23,eee units 44, 000 units Product A 0.60 Product B 0.20 Additional Information about the company follows: a. Direct materials per unit is $32 for Product A and $13 for Product B. b. The direct labor wage rate is $11 per hour. c. Product A requires a speclal process that Is not required for Product B. d. The following activity cost pools are used by the company's ABC system. Estimated Expected Activity Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Overhead Cost Product A Product B Total 24 16,065 $ 135,000 $ 226,000 85 68 153 4,500 13,800 4,500 22,600 8,800 Required: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using ABC costing, determine the total cost per unit of Product A and Product B. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Product A Product B Direct materials Direct labor Manufacturing overhead Unit product cost < Required 1 Required 2 >
Transcribed Image Text:Information about a company's two products Is found below. Direct Labor- Hours per Unit Annual Production 23,eee units 44, 000 units Product A 0.60 Product B 0.20 Additional Information about the company follows: a. Direct materials per unit is $32 for Product A and $13 for Product B. b. The direct labor wage rate is $11 per hour. c. Product A requires a speclal process that Is not required for Product B. d. The following activity cost pools are used by the company's ABC system. Estimated Expected Activity Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Overhead Cost Product A Product B Total 24 16,065 $ 135,000 $ 226,000 85 68 153 4,500 13,800 4,500 22,600 8,800 Required: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using ABC costing, determine the total cost per unit of Product A and Product B. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Product A Product B Direct materials Direct labor Manufacturing overhead Unit product cost < Required 1 Required 2 >
Information about a company's two products Is found below. Direct Labor- Hours per Unit Annual Production 23,eee units 44, 000 units Product A 0.60 Product B 0.20 Additional Information about the company follows: a. Direct materlals per unit Is $32 for Product A and $13 for Product B. b. The direct labor wage rate is $11 per hour. c. Product A requlres a special process that Is not requlred for Product B. d. The following activity cost pools are used by the company's ABC system. Estimated Expected Activity Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Overhead Cost Product A Product B Total 24 16,065 $ 135,000 $ 226,000 85 68 153 4,5ee 13,800 4,500 22,600 8,800 Requlred: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each activity cost pool, calculate the activity rate. Activity Cost Pool Activity Rate Machine setups Special process per setup per MH General factory per DLH < Required 1 Required 2 >
Transcribed Image Text:Information about a company's two products Is found below. Direct Labor- Hours per Unit Annual Production 23,eee units 44, 000 units Product A 0.60 Product B 0.20 Additional Information about the company follows: a. Direct materlals per unit Is $32 for Product A and $13 for Product B. b. The direct labor wage rate is $11 per hour. c. Product A requlres a special process that Is not requlred for Product B. d. The following activity cost pools are used by the company's ABC system. Estimated Expected Activity Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Overhead Cost Product A Product B Total 24 16,065 $ 135,000 $ 226,000 85 68 153 4,5ee 13,800 4,500 22,600 8,800 Requlred: 1. For each activity cost pool, calculate the activity rate. 2. Using ABC costing, determine the total cost per unit of Product A and Product B. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each activity cost pool, calculate the activity rate. Activity Cost Pool Activity Rate Machine setups Special process per setup per MH General factory per DLH < Required 1 Required 2 >
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