Compute the indirect manufacturing cost per unit

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Reference no: EM13515427

Computing indirect manufacturing costs per unit

The following information is provided for the Orbit Antenna, Corp., which manufactures two products: Lo-Gain antennas, and Hi-Gain antennas for use in remote areas.

Activity

Cost

Cost Driver

Setup

$ 57,000

Number of setups

Machine maintenance

27,000

Machine hours

Total indirect manufacturing costs

$ 84,000



Lo-Gain

Hi-Gain

Total

Direct labor hours

1,400

3,600

5,000

Number of setups

30

30

60

Number of machine hours

1,800

1,200

3,000

Orbit plans to produce 75 Lo-Gain antennas and 150 Hi-Gain antennas.

Requirements

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

2. Compute the indirect manufacturing cost per unit using direct labor hours from the single-allocation-base system.

Reference no: EM13515427

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