Macron Corporation manufactures two productsLaptops and Tablets. The monthly production and sales of Laptops is 1,800 units, while 8,000 units of Tablets are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Laptops require 1.0 direct labor hours per unit, while Tablets require 0.5 direct labor hours per unit. The total estimated overhead for the period is $925,000. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools: Activity Cost Pool Estimated Overhead Cost Laptops Tablets Total Setups $102,000 200 batches 400 batches 600 batches Machining $436,000 900 machine hours 800 machine hours 1,700 machine hours Finishing $387,000 2,000 direct labor hours 4,000 direct labor hours 6,000 direct labor hours Total $925,000.

What would be the overhead cost per laptop using an activity-based costing system?

Answer rating: 100% (QA)

To determine the overhead cost per laptop using an activitybased costing ABC system we need to alloc... View the full answer