Calculate the product cost per unit

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Reference no: EM13515431

Using ABC to compute product costs per unit

Jaunkas, Corp., manufactures mid-fi and hi-fi stereo receivers. The following data have been summarized:


Mid-Fi

Hi-Fi

Direct materials cost per unit

$ 400

$ 1,300

Direct labor cost per unit

400

300

Indirect manufacturing cost per unit

?

?

Indirect manufacturing cost information includes the following:

Activity

Allocation Rate

Mid-Fi

Hi-Fi

Setup

$1,700/per setup

39 setups

39 setups

Inspections

$ 400/per hour

45 hours

15 hours

Machine maintenance

$ 10/per machine hour

1,900 machine hours

1,200 machine hours

The company plans to manufacture 200 units of the mid-fi receivers and 250 units of the hi-fi receivers.

Requirement

1. Calculate the product cost per unit for both products using activity-based costing.

Reference no: EM13515431

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