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100% Sun 11:07 A tar.pdf (page 207 of 995) Search TIVITY-BASED...

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Accounting

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100% Sun 11:07 A tar.pdf (page 207 of 995) Search TIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT 5-23 ABC, process costing. Sander Company produces mathematical and financial calculators and op- erates at capacity. Data related to the two products are presented here: Mathematical Financial Annual production in units 45,000 90,000 Direct material costs $180,000 $360,000 Direct manufacturing labor costs $ 90,000 $180,000 Direct manufacturing labor-hours 4,500 9,000 Machine-hours 30,000 60,000 Number of production runs 45 45 Inspection hours 1,200 600 Total manufacturing overhead costs are as follows: Machining costs Setup costs Inspection costs Total $360,000 108,000 117,000 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. 2. Compute the manufacturing cost per unit for each product. 3. How might Sander's managers use the new cost information from its activity-based costing system to better manage its business

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