Solution-Compute the abc indirect manufacturing cost

Compute the abc indirect manufacturing cost

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Reference no: EM13515423

Computing indirect manufacturing costs per unit

Day, Corp., is considering the use of activity-based costing. The following information is provided for the production of two product lines:

Activity	Cost	Cost Driver
Setup	$ 106,000	Number of setups
Machine maintenance	55,000	Machine hours
Total indirect manufacturing costs	$ 161,000

	Product A	Product B	Total
Direct labor hours	6,500	5,500	12,000
Number of setups	20	180	200
Number of machine hours	1,600	2,400	4,000

Day plans to produce 400 units of Product A and 375 units of Product B.

Requirement

1. Compute the ABC indirect manufacturing cost per unit for each product.

Reference no: EM13515423

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Compute the abc indirect manufacturing cost

Reference no: EM13515423

Reference no: EM13515423

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