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s Drilling Company uses activity-based costing and provides this information: Driver Rate $ 0.3 42 2.40 21 Manufacturing Activity Materials handling Machinery Assembly Inspection Cost Driver Number of parts Number of machine hours Number of parts Number of finished units Drilling has just completed 71 units of a component for a customer. Each unit required 91 parts and 2.55 machine hours. The prime cost is $1,210 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 71 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 $171 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $291 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 71 units of a component for a customer. Each unit required 91 parts and 2.55 machine hours. The prime cost is $1.210 per finished unit. All other manufacturing costs are classified as manufacturing ovethead Required: 1. Compute the total manufacturing costs and the unit costs of the 71 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 $171 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $291 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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