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Consider the following data for two products of Vigano Manufacturing. Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Actual Activity Usage Setups Parts Inspections Budgeted Cost $ 10,000 8,000 12,000 $ 30,000 Product A 1,000 units $ 20 per unit $40 per unit 2.0 per unit Required 1 Required 2 Activity Driver 20 machine setups 16,000 parts 100 inspections 1. Using a plantwide overhead rate based on 2,500 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Product B 200 units $ 30 per unit $50 per unit 2.5 per unit Product A 8 setups 10,000 parts 40 inspections Product B 12 setups 6,000 parts 60 inspections Complete this question by entering your answers in the tabs below. Prev 4 of 8 www Next >

Consider the following data for two products of Vigano Manufacturing. 1. Using a plantwide overhead rate based on 2.500 direct labor hours, compute the total product cost per unit for each product 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost. (d) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Complete this question by entering your answers in the tabs below

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