Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an...
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Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the two products follow. V-1 18, eea V-2 Units produced Direct materials cost per unit Machine hours per unit Production runs per month 1,000 1 8e 40 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow. Machine depreciation Setup labor Material handling $54,e00 25,200 15,840 Total $95,040 Exercise 9-39 (Algo) Activity-Based Costing (LO 9-3, 5) Required: a. Compute the unit costs for the two products V-1 and V-2 using the current costing system at Upriver (using machine hours as the allocation basis). (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Compute the unit costs for the two products V-1 and V-2 using the proposed ABC system at Upriver. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Unit Cost V-1 V-2 a. Using current costing system 9.92 O $ 19.84 b. Using proposed ABC system 7.50 O s 20.04 Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the two products follow. V-1 18, eea V-2 Units produced Direct materials cost per unit Machine hours per unit Production runs per month 1,000 1 8e 40 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow. Machine depreciation Setup labor Material handling $54,e00 25,200 15,840 Total $95,040 Exercise 9-39 (Algo) Activity-Based Costing (LO 9-3, 5) Required: a. Compute the unit costs for the two products V-1 and V-2 using the current costing system at Upriver (using machine hours as the allocation basis). (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Compute the unit costs for the two products V-1 and V-2 using the proposed ABC system at Upriver. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Unit Cost V-1 V-2 a. Using current costing system 9.92 O $ 19.84 b. Using proposed ABC system 7.50 O s 20.04
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259969478
6th edition
Authors: William N. Lanen, Shannon Anderson, Michael W Maher
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