# 1.Parker Company produces mathematical and financial calculators and operates at capacity. Data related to the two products...

## Question:

1.Parker Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here:

Mathematical

Financial

Annual production in units

50,000

100,000

Direct material costs

$150,000

$300,000

Direct manufacturing labor costs

$ 50,000

$100,000

Direct manufacturing labor-hours

2,500

5,000

Machine-hours

25,000

50,000

Number of production runs

50

50

Inspection hours

1,000

500

Total manufacturing overhead costs are as follows:

Total Machining costs $375,000

Setup costs $120,000

Inspection costs $105,000

1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. (1.5 pt)

2. Compute the manufacturing cost per unit for each product using Activity-based Costing.(2 pts)