Ace Company manufactures two products, X and Y. The following information is given: Data regarding the
Question:
Ace Company manufactures two products, X and Y. The following information is given:
Data regarding the two products follow:
Product | Direct labor hours required to make 1 unit | Annual production units |
X | 4 hours per unit | 2,000 units |
Y | 5 hours per unit | 1,000 units |
Data regarding direct material and direct labor costs follow:
X Y
Direct material cost per unit of product $90 $200
Direct labor cost per unit of product 80 100
This company uses activity-based costing. The company’s overhead costs are traced to the following two
activity cost pools. The following data are given:
Activity cost pool | Activity measure | Estimated Overhead Cost | Activity | ||
For X | For Y | Total | |||
Part Management | Number of parts | $12,000 | 200 parts | 600 parts | 800 parts |
Special Processing | Machine hours (MHs) | $18,000 | 500 MHs | 400 MHs | 900 MHs |
Activity rates are already computed as follows:
Part management: $15/part
Special processing: $20/MH
10. How much overhead cost is assigned to Product X (for all 2,000 units together)? $_________
11. How much is the overhead cost per unit of Product X? $_________
12. How much is the unit product cost of Product X? $_________
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess