What is the total manufacturing cost per unit

Assignment Help Managerial Accounting

Reference no: EM13923542

Managerial Accounting

Suppose Sunstar Corporation is one of Dell 's circuit board suppliers. Sunstar currently uses traditional costing for making business decisions. At the urging of Dell, however, the company has decided to move to activity-based costing for circuit board production related to products PCB124 and PCB136. As one of the company's accountants, you have been asked to prepare a spreadsheet comparing the two costing methods for the next company board meeting.

When you have completed your spreadsheet, answer the following questions:

a. What is the total manufacturing cost per unit using traditional costing for PCB124? For PCB136? Use machine hours as the cost-allocation base.

b. What is the total manufacturing cost per unit using activity-based costing for PCB124? For PCB136?

c. What conclusions can be drawn from your spreadsheet results?

Reference no: EM13923542

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