Exercise $4-11($Algo$)$ Computing product cost per unit using plantwide method and activity$-$based costing

LO P$1,$ P$3$

Consider the following data for two products of Vigano Manufacturing.

Using a plantwide overhead rate based on $7,500$ direct labor hours, compute the total product cost per unit for each product.

Consider the following additional information about these two products. If activity$-$based costing is used to allocate overhead

cost$,($a$)$ compute overhead activity rates, $($b$)$ allocate overhead cost to Product A and Product B and compute overhead cost per

unit for each, and $($c$)$ compute product cost per unit for each.

Actual Activity Usage

Setups

Parts

Inspections

Product A

Product B

$8$ setups

$12$ setups

$10,000$ parts

$40$ inspections

$6,000$ parts

$60$ inspections

Complete this question by entering your answers in the tabs below.

Required $2$

Using a plantwide overhead rate based on $7,500$ direct labor hours, compute the total product cost per unit for each product.