Reference no: EM132728076
Question - Basco Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow:
Basco Boards Shimano Boards
Production costs Direct materials $26.00 $40.00
Direct labor $32.00 $55.00
Allocated overhead $16.00 $22.00
Total units produced and sold 6,000 10,000
Total sales revenue $564,000 $1,400,000
Basco allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $64,000 per quarter, to the two products equally.
Required -
1. Compute the per-unit cost for each product.
2. Compute the profit for each product.
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