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  3. 1 northwest company produces two types of glass sh

1 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The...

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Accounting

1
Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company
2 reports the following cost data. (Click on the Part 1, Part 2 and Part 3 Tabs below.)
3
4
5
6
7 Overhead (using plantwide rate)
8 Total product cost
9 Units produced
10 Product cost per unit
11
Northwest's controller wants to apply activity-based costing to allocate the $108,000 of overhead cost to the two products to see
whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity
usage for the period. The following additional information is collected.
Required:
Compute the activity rate for each activity using activity-based costing.
Compute overhead cost per unit for each of the two products using activity-based costing.
Determine product cost per unit for each of the two products using activity-based costing.
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