Compute the indirect manufacturing costs per unit

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Reference no: EM132946637

The following information is provided for Cruzan Rum,Corp. which manufactures two products: Rum and Baileys for use in the VI market.

 Activity Cost Allocation Base
Setup $60,000 Number of setups
Machine maintenance 40,000 Number of machine hours
Total direct manufacturing cost $100,000

                                                Rum                  Baileys            Total
Direct labor hours                        1,200               3,800            5,000
Number of setups                          40                      40                80
Number of machine hours              3,000                  2,000           5,000
Cruzan Rum plans to provide          250 Rum and     450 Baileys

Requirements

Problem 1. Compute the indirect manufacturing costs per unit using direct labor hours to the single plantwide predetermined overhead allocation rate.

Problem 2. Compute ABC indirect manufacturing cost per unit for each product.

Reference no: EM132946637

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