Question

Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates $ 6.00 per direct labor-hour $ 10.00 per machine-hour $ 50.00 per setup $ 100.00 per order $ 120.00 per shipment $ 10.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year $ $ 378 4.50 5.00 2,000 B52 $26.00 $ 6.00 100 Direct labor-hours Machine-hours Machine setups Production orders Shipments Total Expected Activity 378 B52 1,400 30 2,400 30 8 1 8 1 6 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calcula decimal places.) J78 B52 Unit product cost

Answer 1

		J78	B52
	Activity rate	Activity	Overhead= Activity rate × Activity	Activity	Overhead= Activity rate × Activity
Labor related	$6	1,400	$8,400	30	$180
Machine related	$10	2,400	$24,000	30	$300
Machine setups	$50	8	$400	1	$50
Production orders	$100	8	$800	1	$100
Shipments	$120	6	$720	1	$120
General factory	$10	1,400	$14,000	30	$300
Total overhead			$48,320		$1,050
Overhead cost per unit			$24.16($48,320/2,000)		$10.5($1,050/1,000)
Direct materials			$4.50		$26
Direct labor			$5		$6
Unit product cost			$33.66		$42.5