Question

quickly 3. Given the following data, answer the questions below the table: ading styles Data Deluxe 2,000 Tourist 10,000 Annual sales in units $25 $17 Direct materials per unit Direct labor-hours per unit 5 Direct labor rate $12 per DLH Estinato Overhead Cos Fxpected Activity Tourist Activities and Activity Measures Deluxe Dolor Tolell 40,000 2,000 Labor related direct labor-hours) Machine selups (selups) Production orders (orders) General factory (machine-hours) 80,000 150,000 70 ODD 250,000 550.000 10.000 3.000 230 12,000 50,000 5,000 500 40,000 28,000 What is the product cost for the Deluxe model? U E -- + 100% 2/28/2020 SD
What is the product cost for the Deluxe model?

What is the Activity Based Costing unit product cost for the Deluxe model? (Round your final answer to 2 decimal places.)

Answer 1

Activity rate=Estimated overhead cost/Total expected activity
Activity cost pool			Estimated Overhead Cost	Total Expected Activity	Activity Rate
Labor related			80000	50000	1.6	Per direct labor hour
Machine setups			150000	5000	30	Per setup
Production orders			70000	500	140	Per order
General factory			250000	40000	6.25	Per machine hour
Overhead cost=Actual activity*Activity rate
Activity cost pool		Activity Rate		Actual activity	Overhead cost
		a		b	a*b
Labor related		1.6	Per direct labor hour	10000	16000
Machine setups		30	Per setup	3000	90000
Production orders		140	Per order	230	32200
General factory		6.25	Per machine hour	12000	75000
Total overhead cost		a			213200
Annual sales in units		b			2000
Overhead cost per unit		a/b			106.6
Product cost:
			$
Direct materials per unit			25
Direct labor cost per unit		(5*12)	60
Overhead cost per unit			106.6
Total			191.6