Question: Based on WireBuzzs current traditional costing system, as outlined in the case, calculate the total cost and unit cost expected for the PBP and the
Based on WireBuzz’s current traditional costing system, as outlined in the case, calculate the total cost and unit cost expected for the PBP and the LWTP wall key pads.
Cannot use a plant wide rate to solve this question. Can use other forms of traditional costing systems.
| PBP | LWTP | Total | |
| Selling price | $170.00 | $340.00 | |
| Units in 2021/22 | 62,000.00 | 35,000.00 | 97,000.00 |
| Traditional costing system | |||
| PBP | LWTP | Total | |
| Budgeted direct materials cost | $5,580,000.00 | $5,250,000.00 | $10,830,000 |
| Direct labour hours per unit (20$/h) | 1.5 | 4 | |
| Machine hours per unit | 1 | 2 | |
| Direct labour cost | $1,860,000.00 | $2,800,000.00 | |
| Manufacturing Overheads | PBP | LWTP | Total Costs |
| Material-related | $837,000.00 | $787,500.00 | $1,624,500.00 |
| Variable manufacturing | $465,000.00 | $700,000.00 | $1,165,000.00 |
| Machine-related | $1,364,000.00 | $1,540,000.00 | $2,904,000.00 |
| $5,693,500.00 | |||
Step by Step Solution
★★★★★
3.46 Rating (153 Votes )
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
23 PBP LWTP Total 24 Direct labour hours per unit A 15 4 Number ... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Study Help