Answer Happy

15 Information about a company's two products is found below. Direct Labor- Hours per Unit Product A Product B 0.20 0.60 Annual Production 12,000 units 44,000 units Additional information about the company follows: a. Direct materials per unit is $35 for Product A and $17 for Product B. b. The direct labor wage rate is $16 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) Complete thic Estimated Overhead Cost $ 30,420 $ 270,000 $ 96,000 Expected Activity Product A Product B 130 104 0 4,500 7,200 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. Total 234 4,500 16,000

b. The direct labor wage rate is $16 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 Required 1 Required 2 For each activity cost pool, calculate the activity rate. Activity Cost Pool Activity Rate Machine setups Special process General factory $ $ $ 96,000 30,420 270,000 per setup per MH per DLH- Complete this question by entering your answers in the tabs below. 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. Expected Activity Product A Product B 130 4,500 7,200 104 0 8,800 Total 234 4,500 16,000