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ENGG433/956-Spring-2019-Week-10 Submission Question 10.23 10.23 ABC costing: ABM LO3 Palmer Company uses an activity-based costing system. It has the following manufacturing activity areas, related drivers used as allocation bases, and cost allocation rates: Activity Cost driver Cost allocation rate Machine set-up Number of set-ups $50.00 Materials handling Number of parts $0.50 Machining Machine hours $26.0 Assembly Direct labour hours $22.00 Inspection Number of finished units $12.00 During the month, 100 units were produced, requiring two set-ups. Each unit consisted of 19 parts, and used 1.5 direct labour hours and 1.25 machine hours. Direct materials cost $100 per finished unit. All other manufacturing costs are classified as conversion costs. ABC costs for research and marketing costs are $140. All other non-manufacturing ABC costs are $320 per unit. Required (a) Calculate the manufacturing cost per unit for the period. (b) Calculate the total cost (manufacturing and non-manufacturing costs) per unit for the period. ENGG433/956-Spring-2019-Week-10 Submission Question 10.23 10.23 ABC costing; ABM LO3 Palmer Company uses an activity-based costing system. It has the following manufacturing activity areas, related drivers used as allocation bases, and cost allocation rates: Activity Cost driver Cost allocation rate Machine set-up Number of set-ups $50.00 Materials handling Number of parts $0.50 Machining Machine hours $26.0 Assembly Direct labour hours $22.00 Inspection Number of finished units $12.00 During the month, 100 units were produced, requiring two set-ups. Each unit consisted of 19 parts, and used 1.5 direct labour hours and 1.25 machine hours. Direct materials cost $100 per finished unit. All other manufacturing costs are classified as conversion costs. ABC costs for research and marketing costs are $140. All other non-manufacturing ABC costs are $320 per unit. Required (a) Calculate the manufacturing cost per unit for the period. (b) Calculate the total cost (manufacturing and non-manufacturing costs) per unit for the period

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