Information about a company's two products is found below. Direct Labor- Hours per Unit 0.70 0.30 Product A Product B An
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Information about a company's two products is found below. Direct Labor- Hours per Unit 0.70 0.30 Product A Product B An
company's two products is found below. Direct Labor- Hours per Unit 0.70 0.30 Product A Product B Annual Production. 23,000 units 56,000 units Additional information about the company follows: a. Direct materials per unit is $36 for Product A and $20 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. Activity Cost Pool (and Activity Measure) Machine setups (number of setups) Special process (machine-hours) General factory (Direct labor-hours) Estimated Overhead Cost Product A 14,535 85 $ $ 250,000 5,000 296,100 16, 100. $ Expected Activity Product B 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. 68. 0 16,800 Total 153 5,000 32,900
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