Calculate manufacturing overhead cost per metal casement

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Reference no: EM132526479

Two-Stage ABC for Manufacturing

Thornton Company has determined its activity cost pools and cost drivers to be the following:

Cost poolsSetup$ 45,000

Material handling9,600

Machine operation180,000

Packing54,000

Total indirect manufacturing costs$ 288,600

Cost driversSetups500

Material moves600

Machine hours18,000

Packing orders1,200

One product made by Thornton, metal casements, used the following activities during the period to produce 500 units:

Setups40

Material moves100

Machine hours2,100

Packing orders180

Question (a) Calculate the cost per unit of activity for each activity cost pool for Thornton company.

Setup $90

Material handling $16

Machine operation $10

Packing $45

Question (b) Calculate the manufacturing overhead cost per metal casement manufactured during the period

Reference no: EM132526479

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