Kunkel company makes two products and uses a conventional

Reference no: EM13567216

Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Mercon Wurcon Direct materials cost per unit $ 12.10 $ 22.80 Direct labor cost per unit $ 6.70 $ 3.60 Direct labor-hours per unit 0.48 0.28 Number of units produced $ 21,000 $ 83,000 Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of dirdistributed as follows during the ect labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be upcoming year: Mercon Wurcon Total Engineering design time 2,000 3,600 5,600 Compute the unit product costs for the two products using the proposed ABC system.

Reference no: EM13567216

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