Cam corp. is a manufacturer of wholesale goods. It currently sells to two products. Product A priced
Question:
Cam corp. is a manufacturer of wholesale goods. It currently sells to two products. Product A priced at 2,000 and B priced at 1,000. Cam Corp is trying to understand the true profit for each product that it produces on a per unit basis. Direct material costfor product A is 500 per unit and 350 per unit for product B. It takes 10 hours to assemble and test each unit of Product A and 5 hours for each unit of product B. Cam Corp. pays its assembly technician 25 dollars per hour. Total overhead costs for the period was 2,500,000 For the period Cam Corp. produced and sold 2,500 units of Product A and 5,500 units of Product B. Table 5 shows how overhead cost were generated by activity for product A and B. Table 5 : Activity Center Set up Assembly Testing please using activity based costing to allocate fixed cost, what is the total profit per unit (including allocated fix costs) of product A.
Business Forecasting with Forecast X
ISBN: 978-0073373645
6th edition
Authors: Holton wilson, barry keating, john solutions inc