Question

часы. • Руп Data for the next 2 questions: Brilliant Accents Company manufactures and sells three styles of kitchen faucets: Brass, Chrome, and White. Currently, factory overhead cost is allocated among the product using a plant-wide overhead rate based on direct labor hours. Company has been advised to assign factory overhead cost using Activity Based Costing based on three major overhead causing activities of Machining, Setup, and Inspection The following additional data apply: Projected sales in units BRASS CHROME WHITE 30,000 50,000 40,000 PER UNIT data: Selling price per unit $40 $20 $30 Direct materials per unit Direct labor per unit FOH $15 $3 $9 Direct labor hours-per product line 40,000 10,000 30,000 Machine hours-per product line 25,000 25.000 10,000 Number of Setups-per product line 200 100 40 Inspection hours-per product line 3,000 2,000 2,000 Total overhead costs and activity levels for the year are estimated as follows:

Answer 1

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Answers are highlighted in yellow: Solution: | Brass Chrome White $ $ Brass Chrome White 8.00 $ 4.00 $ 8.00 15.00 $ 3.00 $ 9.00 Product Direct material cost per unit Direct labor per unit FOH: (863990/80000) *40000, 10000 30000 units FOH per unit Total Manufacturing cost per unit 431995 107998.8 323996.3 30000 50000 40000 $ $ 14.40 $ 37.40 $ 2.16 9.16 $ 8.10 $ 25.10 a) Brass Chrome White Brass Chrome $ 8.00 $ 4.00 $15.00 $ 3.00 White $ 8.00 $ 9.00 Product Direct material cost per unit Direct labor per unit FOH: Machining (300000/60000) *25000;25000;10000 Setups (249900/340)*200;100;40 Inspection (314090/7000) *3000;2000;2000 125000 125000 50000 147000 73500 29400 1346108974089740 406610 288240 169140 30000 50000 40000 Units b) FOH per unit Total Manufacturing cost per unit $ 13.55 $ 5.76 $36.55 $ 12.76 $ 4.23 $ 21.23