MDD currently produces product MBA-15, which has direct costs by department as shown in the table below. Calculate the traditional (also called full-absorption) reported unit cost of Product MBA-15.
| Cost Category | Wafer Fab | Wafer Test | ICA DWB | ICA MTF | IC Test | Total |
| Direct Materials | $0.1135 | $0.0000 | $0.3656 | $0.0429 | $0.0000 | $0.5220 |
| Direct Labor | $0.2626 | $0.0205 | $0.4764 | $0.5429 | $0.6382 | $1.9406 |
| Cost Category | Wafer Fab | Wafer Test | ICA DWB | ICA MTF | IC Test | Total |
| Direct material cost per unit | $0.1135 | $0.0000 | $0.3656 | $0.0429 | $0.0000 | $0.5220 |
| Add: Direct labor cost per unit | $0.2626 | $0.0205 | $0.4764 | $0.5429 | $0.6382 | $1.9406 |
| Add: Manufacturing overhead cost per unit | $0 | $0 | $0 | $0 | $0 | $0 |
| Unit Product Cost | $0.3761 | $0.0205 | $0.8420 | $0.5858 | $0.6382 | $2.4626 |
MDD currently produces product MBA-15, which has direct costs by department as shown in the table...
ABC currently produces product 123, which has direct costs by department as shown in the table below. Calculate the full-absorption reported unit cost of Product 123. Cost Wafer Fab Wafer Test ICA DWB ICA MTF IC Test Total Direct Materials $.1135 $.0000 $.3656 $.0429 $.000 $.5220 Direct Labor $.2626 $.0205 $.4764 $.5429 $.6382 $1.9406
Activity-Based Costing, Distorted Product Costs Sharp Paper Inc. has three paper mills, one of which is located in Memphis, Tennessee. The Memphis mill produces 300 different types of coated and uncoated specialty printing papers. Management was convinced that the value of the large variety of products more than offset the extra costs of the increased complexity. During 20X1, the Memphis mill produced 120,000 tons of coated paper and 80,000 tons of uncoated paper. Of the 200,000 tons produced, 180,000 were...