Question

Blevins Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow: Basco Boards Shimano Boards Production costs Direct materials $ 25 $ 38 Direct labor $ 32 $ 54 Allocated overhead $ 15 $ 18 Total units produced and sold 5,000 10,000 Total sales revenue $ 500,000 $ 1,400,000 Blevins allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $54,000 per quarter, to the two products equally. Required Compute the per-unit cost for each product. (Round your answers to 2 decimal places.) Compute the profit for each product.

Answer 1

Solhion working Note: 1 computation of delivery expenses and sales commision per unit to each Product given deliveryx & sales commission - $54,000 per auarter and said eavel distribution to each product that means - $27,000 Per each production Basco boards per unit cost $ 24,000 5.000 -5.4 Shimano boards per unit cost $27.000 2.7 at 10.000 -

for each product and computation of per unit cost Profit for each production مس Particulars Basco Boards Shimano Boards $38 $25 $32 $54 Direct material Direct labour allocated overhead Delivery expense & sales commission $ 18 $15 $5.4 roop $ 2.7 $74.4 &112.7 @ Cost Per unit 6 sales revenue © unit's sold @ Total cost @ x) $ 5,00,000 5,000 unit's $14,00,000 10,000 units $3,81,000 $11.27,000 ③ Profit for each & 1113.000 $2,173,000 Product