Computing product cost per unit using plantwide method and ABC LO P1, P2 Consider the following data
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Computing product cost per unit using plantwide method and ABC LO P1, P2
Consider the following data for two products of Vigano Manufacturing.
| Activity | Budgeted Cost (Activity Driver) | |
|---|---|---|
| Machine setup | $ 121,000 | (22 machine setups) |
| Parts handling | 48,000 | (16,000 parts) |
| Quality inspections | 80,000 | (250 inspections) |
| Total budgeted overhead | $ 249,000 | |
| Unit Information | Product A | Product B | ||
|---|---|---|---|---|
| Units produced | 1,000 | units | 200 | units |
| Direct materials cost | $ 20 | per unit | $ 30 | per unit |
| Direct labor cost | $ 40 | per unit | $ 50 | per unit |
| Direct labor hours | 2 | DLH per unit | 2.5 | DLH per unit |
1. Using a plantwide overhead rate based on 2,500 direct labor hours, compute the total product cost per unit for each product. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
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