Calculate manufacturing cost per unit
Soft steel | Hard Steel | |
Direct material | 300 | 200 |
Direct labor | 120 | 60 |
Material handling | 7*4 = 28 | 7*6 = 42 |
Purchase orders | 75*2 = 150 | 225 |
Product testing | 360 | 480 |
Machine setup | 335 | 670 |
Machining | 324 | 324 |
Total manufacturing cost per unit | 1617 | 2001 |
Question 3 International Steel Company has budgeted manufacturing overhead costs of $1,995,000. It has allocated overhead...
Question 3 International Steel Company has budgeted manufacturing overhead costs of $1,995,000. It has allocated overhead on a plant-wide basis to its two products (soft steel and hard steel) using machine hours, which are estimated to be 100,000 for the current year. The company has decided to experiment with activity-based costing and has created five activity cost pools and related activity cost drivers as follows: Activity Centre Cost Driver Estimated Activity Material handling Purchase orders Product testing Machine set-up Machining...
Question 3 International Steel Company has budgeted manufacturing overhead costs of $1,925,000. It has allocated overhead on alatide to the products and hand are estimated to be 100.000 for the current year. The company has decided to experiment with activity-based costing and has created the city cost pools and related t o Activity Centre made heurs, which drives as Cost Driver Estimated Activity Material handling Purchase orders Product testing Machine set-up Machining Number of moves Number of orders Number of...
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EcoFabrics has budgeted overhead costs of $1,086,750. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 517,500 for the current year. The company ha decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups) Overhead alocated to the...
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