Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data.

Northwest's controller wants to apply activity-based costing to page 694 allocate the \(\$ 108,000\) of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected.

Required
1. Compute the activity rate for each activity using activity-based costing.
2. Compute overhead cost per unit for each of the two products using activity-based costing.
3. Determine product cost per unit for each of the two products using activity-based costing.

Transcribed Image Text:

Direct materials. Direct labor.... Overhead (using plantwide rate). Total product cost... Units produced Product cost per unit... Rounded Edge $31,200 12,200 36.600 $80,000 10,000 8 Squared Edge $ 44,800 23,800 71,400 $140,000 14,000 10 $ Total $ 76,000 36,000 108,000 $220,000