Brown Inc. manufactures and distributes two types of household items. The items, Mops and Dusters, are...

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Brown Inc. manufactures and distributes two types of household items. The items, Mops and Dusters, are manufactured on a comm

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Answer 1

Answer #1

1.
	Mops	Dusters
Direct materials	6250	3500
Direct labour	15000	15000
Manufacturing overhead :
Materials handling [ 1.00 * Number of Parts ]	2500	1750
Machining [ 13.00 * Machine hours ]	3315	4875
Assembly [ 1.20 * Units started ]	1500	2100
Inspection [ 2.00 * Units tested ]	250	3300
Total manufacturing cost	28815	30525
(/) Units started	1250	1750
Cost per unit	23.05	17.44

2.

	Mops	Dusters	Total
Total manufacturing cost from using ABC	28815	30525
(-) Direct materials	6250	3500
(-) Direct labour	15000	15000
Total manufacturing overhead	7565	12025	19590

Total direct labor hours = 750 + 750	1500

Plantiwde overhead rate = Total manufacturing overhead / Total direct labor hours = 19590 / 1500	13.06

	Mops	Dusters
Direct materials	6250	3500
Direct labour	15000	15000
Manufacturing overhead [ 13.06 * Direct labor hours ]	9795	9795
Total manufacturing cost	31045	28295
(/) Units started	1250	1750
Cost per unit	24.84	16.17

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Answer 2

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