Question: For product A & B Dunst Corp. is considering the use of activity-based costing. The following information is provided for the production of two product

 For product A & B Dunst Corp. is considering the useof activity-based costing. The following information is provided for the production of

For product A & B

Dunst Corp. is considering the use of activity-based costing. The following information is provided for the production of two product lines: (Click the icon to view the information.) Dunst plans to produce 225 units of Product A and 250 units of Product B. Compute the ABC indirect manufacturing cost per unit for each product. (Round your answers to the nearest cent.) Estimated overhead costs Estimated qty of the allocation base allocation rate Setup $ 102,000 200 = $ 510.00 Machine maintenance $ 45,000 4,000 $ 11.25 Next, select the formula to allocate overhead (OH) costs. Allocated mfg. Predetermined OH allocation rate X Actual qty of the allocation base used overhead costs Compute the total activity-based costs allocated to Product A, and then compute the cost per unit for Product A. Finally, compute the total activity-based costs allocated to Product B then compute the cost per unit for Product B. (Round the cost per unit to the nearest cent.) Product A Setup Machine maintenance Total activity-based costs Number of units Activity-based cost per unit Data table Activity Setup $ Cost Allocation Base 102,000 Number of setups 45,000 Number of machine hours 147,000 Machine maintenance Total indirect manufacturing costs $ Product A Total 5,000 Product B 7,000 170 Direct labor hours Number of setups Number of machine hours 12,000 30 200 800 3,200 4,000

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