A company manufactures two products Alpha and Beta. The company expects to sell 400,000 units of Alpha and 700,000 units of Beta. The price of Alpha is 55 and the price of Beta is 65. Alpha has a per unit direct labour cost of 14 and direct material cost of 8. Beta has a per unit direct labour cost of 30 and direct material cost of 7. The manufacturing overhead costs of the facility is 15 million that can be split into two activity cost pools: Total production planning costs of 10 million, and inspection costs of 5 million. The factory has a total capacity of 8,000 orders planned for production, and a total capacity of 2,000 inspections. Alpha is expected to use 3,000 orders and 1,000 inspections, and Beta 4,000 orders and 500 inspections. What is the activity-based cost per unit of Alpha?

Answer rating: 100% (QA)

To calculate the activitybased cost per unit of Alpha we need to follow the steps of the ActivityBas... View the full answer