Direct Labor-Hours per Unit Annual Production Product A 0.80 24,000 units Product B 0.40 54,000 units Additional inform

[answerhappygod]

Direct
Labor-Hours per Unit
Annual Production
Product A
0.80
24,000 units
Product B
0.40
54,000 units
Additional information about the company follows:
a. Direct materials per unit is $20 for Product A and $14 forProduct B.
b. The direct labor wage rate is $17 per hour.
c. Product A requires a special process that is not required forProduct B.
d. The following activity cost pools are used by the company'sABC system.
Estimated
Expected Activity
Activity Cost Pool (and Activity Measure)
Overhead Cost
Product A
Product B
Total
Machine setups (number of setups)
$
21,870
90
72
162
Special process (machine-hours)
$
157,500
4,500
0
4,500
General factory (Direct labor-hours)
$
530,400
19,200
21,600
40,800
Required:
1. For each activity cost pool, calculate the activity rate.
2. Using ABC costing, determine the total cost per unit ofProduct A and Product B.