Activity-Based, Costing Hercules Industries manufactures two types of electrical

Question

Activity-Based, Costing Hercules Industries manufactures two types of electrical power units, custom and standard, which involve four overhead activities-production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: The activity-base usage quantities for each product are as follows: Determine an activity rate for each activity. Assign activity costs to each product, and determine the unit activity cost using the activity rates from part (a). Round unit costs to the nearest cent. Assume that each product required one direct labor hour per unit. Determine the per unit cost if factory overhead is allocated on the basis of direct labor hours. Round your answer to the nearest cent. Explain why the answers in parts (b) and (c) are different. The input in the box below will not be graded, but may be reviewed and considered by your instructor.

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