Exercise $4-11($Static$)$ 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.

ActivityBudgeted CostActivity DriverMachine setup$ $10,00020$ machine setupsParts handling$8,00016,000$ partsQuality inspections$12,000100$ inspectionsTotal budgeted overhead$ $30,000$

Unit InformationProduct AProduct BUnits produced$1,000$units$200$unitsDirect materials cost$ $20$per unit$ $30$per unitDirect labor cost$ $40$per unit$ $50$per unitDirect labor hours$2\mathrm{.}0$per unit$2\mathrm{.}5$per unit

Using a plantwide overhead rate based on $2,500$ 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 UsageProduct AProduct BSetups$8$setups$12$setupsParts$10,000$parts$6,000$partsInspections$40$inspections$60$inspections