Answer Happy

Required information Upriver Parts manufactures two products, V-1 and V-2, at its River Plant Selected data for an average month for the two products follow. Units produced Direct materials cost per unit Machine hours per unit Production runs per month V-1 10,000 $ 2. 1 80 V-2 1,000 $ 4 2 40 Production at the plant is automated and any labor cost is included in overhead Data on manufacturing overhead at the plant follow Machine depreciation Setup labor Material handling Total $ 63,000 28,800 16,560 $108,360 Required: a. Compute the unit costs for the two products V1 and V-2 using the current costing system at Upriver (using machine hours as the allocation basis). (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Compute the unit costs for the two products V.1 and V-2 using the proposed ABC system at Upriver. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Unit Cost V-1 V-2 a b. Using current costing system Using proposed ABC system