Pecot Industries has provided the following data from its activity-based costing system: Activity Cost Pools Est. Overhead Cost Expected...

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Accounting

Pecot Industries has provided the following data from itsactivity-based costing system:
Activity Cost Pools
Est. Overhead Cost
Expected Activity
Assembly
$498,520
44,000
Machine hours
Processing orders
$54,263
1,100
Orders
Inspection
$77,589
1,110
Inspection hours
Data concerning Pecot’s product LB28 appears below:
           Number of units produced      430
           Machinehours                       990
           Number oforders                   70
           Inspectionhours                     20
           Direct materialscost              $37.74 per unit
           Direct laborcost                    $10.45 per unit
Calculate the total unit product cost of LB28:
(Step 1: Determine activity rates for each activity pool
Step 2: Determine overhead costs charged to product LB28
Step 3: Add up all product costs for LB28
Step 4: Determine unit product cost)

Answer & Explanation Solved by verified expert

3.6 Ratings (493 Votes)

Note Since there are no instructions provided in the question regarding rounding off kindly refer to the notes mentioned after every step and round off as required Step 1 Activity Cost Pools Est See Answer

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Activity Cost Pools	Est. Overhead Cost	Expected Activity
Assembly	$498,520	44,000	Machine hours
Processing orders	$54,263	1,100	Orders
Inspection	$77,589	1,110	Inspection hours