Question: TASK IV Accel, Corp., makes two products: Cand D. The following data have been summarized: Product Product D Direct materials cost per unit $ 700
TASK IV Accel, Corp., makes two products: Cand D. The following data have been summarized: Product Product D Direct materials cost per unit $ 700 $ 2,000 Direct labor cost per unit 300 100 Indirect manufacturing cost per unit? ? Indirect manufacturing cost information includes the following: Activity Allocation Rate Product C Product D Setup $1,500/per setup 38 setups 75 setups Machine maintenance $ 12/per hour 1,400 hours 4,000 hours The company plans to manufacture 150 units of each product. Requirements: 1. Calculate the product cost per unit for Products and using activity-based costing, 2. Accel Corp. desires a 25% target profit after covering all costs. Considering the total costs assigned to the Products and D what would Accel have to charge the customer to achieve that profit? 3. Accel Corp. uses ABC, what are possible benefits of doing so? What about drawbacks? 4. If Accel Corp. decided not to use ABC anymore, what would be different? What are some alternative approaches they may implement
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