Production Inc. uses activity based costing. The following estimated activity costs are identified in the table...

Production Inc. uses activity based costing. The following estimated activity costs are identified in the table below. In addition, they have two product lines, A100 and B100.

Activity	Cost	Cost Driver	A100	B100	Cost allocation base
Setup	$85,600	# of setups	1,600	1,750	16,000
Handling	$136,500	# of parts	1,480	360	65,000
Assembly	$126,000	Direct Labor Hours	800	365	5,000
Total	$348,100

Summary of prime costs:	A100	B100
Direct materials	$16,000	$9,500
Direct labor	$13,400	$12,700

Calculate the unit cost for the two products, A100 and B100.
Do not enter dollar signs or commas in the input boxes.
Round Activity Rate to 2 decimal places. Round all other answers to the nearest whole number.

Activity	Cost	Cost allocation base	Activity Rate
Setup	$Answer	Answer	$Answer
Handling	$Answer	Answer	$Answer
Assembly	$Answer	Answer	$Answer
Total	$Answer		$Answer

	A100		B100
Cost Type	Activity amount	Cost Amount	Activity amount	Cost Amount
Direct materials		$Answer		$Answer
Direct labor		$Answer		$Answer
Setup	Answer	$Answer	Answer	$Answer
Handling	Answer	$Answer	Answer	$Answer
Assembly	Answer	$Answer	Answer	$Answer
Total		$Answer		$Answer

Solutions

Expert Solution



Activity	Cost	Cost Driver	A100	B100	Cost allocation base
Setup	85,600	# of setups	1,600	1,750	16,000
Handling	136,500	# of parts	1,480	360	65,000
Assembly	126,000	Direct Labor Hours	800	365	5,000
Total	348,100



Activity	Cost	Cost allocation base	Acitivity Rate
Setup	85,600	16,000	5.35
Handling	136,500	65,000	2.10
Assembly	126,000	5,000	25.20
Total	348,100


	A100		B100			Acitivity Rate
Activity	Activity Amount	Cost Amount	Activity Amount	Cost Amount
Direct Material		16,000.0		9,500.0
Direct Labor		13,400.0		12,700.0		5.35
Setup	1,600	8,560.0	1,750	9,362.5	(Activity Rate* Activity Usage)	2.10
Handling	1,480	3,108.0	360	756.0		25.20
Assembly	800	20,160.0	365	9,198.0
Total		61,228.0		41516.5

ekkarill92 answered 1 year ago

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