Question

E5-4B. Stage Two ABC for Manufacturing Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year: LO2 Activity Cost Pool Activity Cost Activity Cost Driver Machine setup Materials handling Machine operation $720,000 120,000 12,000 setup hours 3,000 tons of materials 10,000 machine hours 680,000 The following data are for the production of single batches of two products, C23 Cams and U2 Shafts, during the month of August: U2 Shafts C23 Cams Units produced. 300 500 Machine hours Direct labor hours. 400 200 Direct labor cost $ 5,000 $20,000 $10,000 $15,000 Direct materials cost. Tons of materials 13 8 Setup hours Required Determine the unit costs of C23 Cams and U2 Shafts using ABC.

If you could please explain how you get the answers it would really help me

Answer 1

lo rav unit Costs of (23 Cams and Uz shafts using ABC particolau Direct Material cost/ unit Toda (23 Cams or U2 Shafts DO $20000) $ Ho SOU (fisou J $50 (shboy $33.33 (150D) $10 Direct labour cost lonit over Heads Machine setup $ 7,29 0003 ) $ 7,20,000 T2000X +2,005 X $0.36 $ley Makkrial Handling $220,000 13 ) $1.00 2000 & 5oo lou Foto de $1064 Machine operation с раке, y ) 36. у 0, х 3. 3 в Onit costs $86.926 $51.qun