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Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity...

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Accounting

Consider the following data for two products of Vigano Manufacturing.
Activity Budgeted Cost Activity Driver
Machine setup $ 25,000(20 machine setups)
Parts handling 20,000(16,000 parts)
Quality inspections 30,000(100 inspections)
Total budgeted overhead $ 75,000
Unit Information Product A Product B
Units produced 2,500 units 500 units
Direct materials cost $ 35 per unit $ 45 per unit
Direct labor cost $ 55 per unit $ 65 per unit
Direct labor hours 2 per unit 2.50 per unit
Using a plantwide overhead rate based on 6,250 direct labor hours, compute the total product cost per unit for each product.
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. Actual Activity Usage Product A Product B
Setups 8 setups 12 setups
Parts 10,000 parts 6,000 parts
Inspections 40 inspections 60 inspections Allocate overhead to Product A, B and compute overhead cost per unit

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