Compute the unit product cost for tablets

Reference no: EM131989475

Problem

Stockin Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products.

Activity Pool	Department Costs	Cost driver
Binding	$258,615.00	Number of units
Printing	878,419.50	Machine hours
Product design	188,034.00	Change orders
General	483,031.50	None
Total overhead costs	$1,808,100.00

Other information is as follows:

	Tablets	Books
Units	82,100	20,525
Direct materials cost per unit	$4.00	$12.00
Direct labor cost per unit	$5.00	$10.00
Direct labor hours	28,700	14,350
Machine hours	161,400	121,050
Change orders	1,694	3,388

Determine the unit product cost for Tablets using the activity-based costing system.

Reference no: EM131989475

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