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
It may be dispute that  in a  total quality environment, variance analysis  from a standard costing system is redundant.í Talk about the validity of this statement.

Jp Rhodes started a bowling club called " bowl them over". The following transactions took place 4 March 2012. 1. Bowling LTD transferred R20 000 bank account of the club as an in

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

Consider the following information, prepared based on a capacity of 40,000 units: Category Cost per Unit Variable manufacturing costs

1. The table below gives data for Southland where there are three consumption goods: bananas, coconuts and grapes. Goods Quantity in base period basket

Calculation of Deductions - Wages Department A range of deductions are complete from gross earnings when computing the net payment because of the employee, that deductions may

when one firm purchase other and take over its all assets.balance sheet of absorbed firm shows goodwill,should we goodwill as well?

31. Special Orders Maria’s Food Service provides meals that nonprofi t organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April

Variable costs are the cost that are directly proportionate with the quantity of manufacture and or directly associated with the service.

A retail dealer in garments is currently selling 24000 shirts annually. He supplies the following details for the year ended 31st December,2007. Rs Selling Price per shirt