PT ANEKA GAS INDUSTRI Tbk. (SAMATOR) manufactures gas for two variants of Oxygen: (1) Oxygen for industries is a high-vo

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Pt Aneka Gas Industri Tbk Samator Manufactures Gas For Two Variants Of Oxygen 1 Oxygen For Industries Is A High Vo 1 (52.88 KiB) Viewed 9 times

PT ANEKA GAS INDUSTRI Tbk. (SAMATOR) manufactures gas for two variants of Oxygen: (1) Oxygen for industries is a high-volume, 54,000 full cylinder that holds 2% pounds of Oxygen at 10 M3, (2) The medical gas is a low-volume (10,200 units), the two-full cylinder that holds 10 pounds of medical gas at 2 M3. Both products require 1,5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96.300 or [1.5 hrs x (54.000 + 10.200)]. The expected annual manufacturing overhead is $1.584.280. Thus, the predetermined overhead rate is $ 16,45 or ($1.584.280: 96.300) per direct labor hour. The direct materials cost per unit is $ 18,50 for industries and $26.5 for the medical. The direct labor cost is $ 19 per unit for both the industries and medical. Below is the additional information, as follows: Activity Cost Pool Cost Driver Receiving Forming cylinder Machine hours Combustion Air separation Pounds Filling Packing and shipping Number of parts Number of tests Cylinders Pounds $ $ Estimated Overhead 80,400 150,500 412.300 51,000 52,580 837,500 1,584,280 Use of Cost Drivers 335,000 35,000 217,000 25,500 5,258 335,000 Instruction: Compute the total cost per unit for each product under ABC (Activity Based Costing). Industry Expected Use of Drivers by Product 215,000 27,000 165,000 15,500 2,680 215,000 Medical 120,000 8,000 52,000 10,000 1.578 120,000