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Drilling Company uses activity-based costing and provides this information: Manufacturing Activity Materials handling Machinery Assembly Inspection Cost Driver Number of parts Number of machine hours Number of parts Number of finished units Driver Rate $ 0.80 52.00 2.90 31.00 Drilling has just completed 81 units of a component for a customer. Each unit required 101 parts and 3.05 machine hours. The prime cost is $1,310 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required: 1. Compute the total manufacturing costs and the unit costs of the 81 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $181 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $301 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstream activities. Also compute the relative proportion of each main cost category.

Drilling Company uses activity-based costing and provides this information: Drilling has just completed 81 units of a component for a customer. Each unit required 101 parts and 3.05 machine hours. The prime cost is $1,310 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required: 1. Compute the total manufacturing costs and the unit costs of the 81 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $181 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $301 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstream activities. Also compute the relative proportion of each main cost category

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