Using ABC to compute product costs per unit Accel, Corp., makes two products: C and D. The following data have been summarized:
|
|
Product C |
Product D |
|
Direct materials cost per unit |
$700 |
$2,000 |
|
Direct labor cost per unit |
300 |
100 |
|
Indirect manufacturing cost per unit |
? |
? |
Indirect manufacturing cost information includes the following:
|
Setup |
Allocation Rate |
Product C |
Product D |
|
Machine maintenance |
$1,500/per setup |
38 setups |
75 setups |
|
Activity |
$ 12/per hour |
1,400 hours |
4,000 hours |
The company plans to manufacture 150 units of each product.
Requirement
1. Calculate the product cost per unit for Products C and D using activity based costing.