The following information is provided for Space Antenna Corp., which manufactures two products: Lo-Gain antennas and Hi-Gain antennas for use in remote areas.

Space Antenna plans to produce 175 Lo-Gain antennas and 350 Hi-Gain antennas.
Requirements
1. Compute the ABC indirect manufacturing cost per unit for each product.
2. Compute the indirect manufacturing cost per unit using direct labor hours for the single plantwide predetermined overhead allocation rate.

Transcribed Image Text:

Activity Cost Allocation Base Setup Machine maintenance Total indirect manufacturing costs 90,000 Number of setups Number of machine hours $51,000 39,000 Hi-Gain 2,300 50 1,200 Lo-Gain Direct labor hours Number of setups Number of machine hours Total 4,000 100 3,000 1,700 50 1,800