Calculate the manufacturing overhead cost per metal

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Reference no: EM132318364

Question : Two- Stage ABC for Manufacturing

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

Cost Pools

Setup .......................... $77,000

Material handling......... 12,800

Machine operation....... 280,000

Packing........................ 84,000

Total indirect manufacturing costs......$ 453,800

Cost drivers

Setups................350

Material moves....640

Machine hours....20,000

Packing orders.... 1,200

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

Setups 20

Material moves 80

Machine hours 1,900

Packing orders 150

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

Setup $_______

Material handling $______

Material operation $_______

Packing $________

(b) Calculate the manufacturing overhead cost per metal casement manufactured during the period. Round your answer to the nearest cent. $_______

Reference no: EM132318364

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