Solution-Compute per unit cost for each product

Compute per unit cost for each product

Reference no: EM13856523

Problem: Gerald Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow.

	Basco Boards	Shimano Boards
Production costs
Direct materials	$24.50	$37.00
Direct labor	$30.50	$52.00
Allocated overhead	$15.20	$19.00
Total units produced and sold	4,500	8,500
Total sales revenue	$389,250	$1,062,500

Gerald allocates production using activity-based costing. It allocates delivery expense and sales commissions, which amount to $56,500 per quarter, to the two products equally.

Required:

a. Compute per unit cost for each product.

b. Compute the profit each product.

Reference no: EM13856523

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Compute per unit cost for each product

Reference no: EM13856523

Reference no: EM13856523

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