Calculate the cost per unit for products, Cost Accounting

Chemical Recovery Company uses common machinery to manufacture two products.  Each year, the company has a total of four productions runs, which is two production runs for each product. Each run requires similar setup effort. Setup cost totals $40,000 per year and is included in manufacturing overhead. Total overhead for the company is $160,000 annually, and total expected direct labor hours equal 14,000.

The following information is available for products A and B.

                                                                Product A            Product B

Units produced                                10,000                   2,000

Direct material cost per unit               $16                         $16

Direct labor cost per unit                    $20                         $20

Direct labor hours per unit                   1                              1

Required: Calculate the cost per unit for each product, using activity-based costing. Round allocation rates and your final answers to the nearest penny. Show calculations to support your answers.

 

 

Posted Date: 3/20/2013 4:09:42 AM | Location : United States







Related Discussions:- Calculate the cost per unit for products, Assignment Help, Ask Question on Calculate the cost per unit for products, Get Answer, Expert's Help, Calculate the cost per unit for products Discussions

Write discussion on Calculate the cost per unit for products
Your posts are moderated
Related Questions
Bakers Bagels LLC produces and sells 20 types of bagels by the dozen. Bagels are priced at $6.00 per dozen (or $0.50 each) and cost $.020 per unit to produce. The company is consid

Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $630,000. (1) Use t

Income Statement - Cost Accunting: A starting entrepreneur has come up with a plan to start a Gaming Outlet in Haarlem. He would like to buy a building which will cost € 700.0

Determine Difference between Results Using Marginal Costing and Absorption Costing The overhead absorption rate for product X is Ksh.10 per machine hour. All unit of product X

explain the practical application of differential costing with the help of suitable example.

Target Income Calculations Breaking even is not the bad thing, but surely not a satisfactory outcome for most businesses. In its place, a manager might be more interested in le

This is the amount charged due to the usage and passage of time. Fixed assets are utilized for earning revenue. Thus, a decrease in their value is considered to be the operational

#question.ABC Corportaion produces and sell two products. In the most recent month, Product 123 had sales of $33,000 and variable expenses of $15,840. Product 245 had sales of $42,

How does functional classification of overheads like Manufacturing overhead,Administrative overhead affect product cost or profit?

A foreign company plans to clear several dozen acres of ecologically valuable mangrove swamp in Vietnam for the creation of a shrimp aquaculture facility.  This decision will creat