(Activity-Based Costing) Cooper’s Components uses an activity-based costing system for its product costing. For the last quarter, the following data relate to costs, output volume, and cost drivers:
|
Total Overhead Costs |
$ |
|
Machinery (driven by machine hours) |
172,000 |
|
Set-ups (driven by production runs) |
66,000 |
|
Materials handling (driven by store orders) |
45,000 |
|
Total overhead |
283,000 |
|
Product |
A |
B |
C |
|
Production and sales |
4,000 units |
3,000 units |
2,000 units |
|
Number of production runs |
12 |
5 |
8 |
|
Number of stores orders |
12 |
6 |
4 |
|
per unit |
per unit |
per unit |
|
|
Direct costs |
$25 |
$35 |
$15 |
|
Machine hours |
5 |
2 |
3 |
|
Direct labour hours |
4 |
2 |
4 |
What is the total overhead cost assigned to each product?
What is the overhead cost per unit for each product?
What is the total cost per unit for each product?