Total unit cost for part B is closest to? (rounded to two decimal? places) OP Te

Question

Total unit cost for part B is closest to? (rounded to two decimal? places)

OP Technologies Manufacturing manufactures small parts and uses an activity-based costing system Activity Materials Assembling Packaging Est. Indirect Activity Costs $68,000 $269,000 $70,000 Allocation base Material moves Direct labor hours # of finished units Cost allocation rate $3.00/move $9.00/dir. labor hour $1.00/finished unit The following parts were produced in October with the following information Part # Produced Materials Costs # Moves 2,150 5,000 4,850 $3,000 $5,500 $8,000 900 2,000 2,300 Dir. Labor Hrs. 250 525 1,700 OA. $4.70 O B. $4.25 O C. $3.15 OD. $5.05

Explanation / Answer

Total cost for par B=Material cost+Total overheads

Total overheads=Materials+Assembling+Packaging

=(3*2000)+(9*525)+(5000*1)=$15725

Hence Total cost for par B=Material cost+Total overheads

=(5500+15725)=$21225

Hence cost per unit for part B=($21225/5000)

=$4.25(Approx).

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