Homework Answers
Solution
| Laptops | Desktops | |
| Total Cost per unit | $ 80.42 | $ 61.80 |
Working
| ABC Costing | ||
| Laptops | Desktops | |
| Direct material | $ 5,500.00 | $ 7,500.00 |
| Direct labor | $ 1,300.00 | $ 1,190.00 |
| Overheads | $ 18,131.00 | $ 10,469.00 |
| Total Cost per unit | $ 24,931.00 | $ 19,159.00 |
| Divided by : Total Units | 310 | $ 310.00 |
| Cost per Unit | $ 80.42 | $ 61.80 |
.
| Cost assigned to Laptops | |||
| Activity name | Activity Rates | Activity | ABC Cost |
| (A) | (B) | (A x B) | |
| Material receiving & handling | 3% | 5,500.00 | $ 165.00 |
| Production setup | $ 120.00 | 34.00 | $ 4,080.00 |
| Assembly | $ 6.00 | 41.00 | $ 246.00 |
| Quality inspection | $ 1.80 | 7,200.00 | $ 12,960.00 |
| Packing and shipping | $ 10.00 | 68.00 | $ 680.00 |
| Total Overheads assigned | $ 18,131.00 | ||
.
| Cost assigned to Desktops | |||
| Activity name | Activity Rates | Activity | ABC Cost |
| (A) | (B) | (A x B) | |
| Material receiving & handling | 3% | 7500 | $ 225 |
| Production setup | $ 120.00 | 12 | $ 1,440 |
| Assembly | $ 6.00 | 29 | $ 174 |
| Quality inspection | $ 1.80 | 4700 | $ 8,460 |
| Packing and shipping | $ 10.00 | 17 | $ 170 |
| Total Overheads assigned | $ 10,469.00 | ||
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