Computation of unit cost using activity-based costing

Assignment Help Finance Basics

Reference no: EM139752

Computation of unit cost using activity-based costing.

VG Company has identified the following cost pools and cost drivers:

COST POOLS	ACTIVITY COST	COST DRIVERS
Machine Setup	$360,000	6000 setup hours
Materials Handling	$100,000	50,000 pounds of material
Electric Power	$40,000	80,000 kilowatt hours

The following information pertains to the production of V203 and G179:

ITEMS	V203	G179
Number of units produced	5,000	15,000
Direct Materials Cost	$25,000	$33000
Direct Labor Cost	$14,000	$16,000
Number of Setup Hours	120	150
Pounds of Material Used	5,000	10,000
Kilowatt Hours	2,000	3,000

Determine the unit cost for each of the two products using activity-based costing.

Reference no: EM139752

Questions Cloud

Representative sample of all americans : To interpret scores on it, he is presently giving the test to a representative sample of all Americans.

Computation of breakeven sales and contribution margin : Computation of Breakeven sales and Contribution margin at breakeven and what would be the break even in this case

Role of attributions in our social world : Examine the duty of attributions in our social world. What are attributions, and how do we use them in our daily lives?

Determine the firm''s operating income : Which of the following will cause income determined with absorption costing to be higher than income determined with direct costing - An excess of cost of goods manufactured over cost of goods sold for the period represents

Computation of unit cost using activity-based costing : Computation of unit cost using activity-based costing and Determine the unit cost for each of the two products using activity-based costing

Proper accounting treatment of machine : Discuss the proper accounting treatment of $273,000 ($714,000 − $441,000) by which the cost of the first machine exceeded the cost of subsequent machines.

Aging and the elderly : Describe how different societies and technological factors affect how aging is viewed.

Replacing the asset by using nvp methodology : The new machine will cut operating costs by $10,000 each year for the next five years. Taylor's cost of capital is 8 percent. Should the firm replace the asset? (Use NPV methodology to solve this problem)

Find comparative income statements for the company : Find comparative income statements for the company similar to Exhibit 6.8 for the three different inventory costing methods of FIFO, LIFO, and weighted average.

User Account

All Pages