Use the information below to answer questions 24 and 25, and write the correct a

Question

Use the information below to answer questions 24 and 25, and write the correct answer in the space provided. Total Cost C-Activity S- Activity Activity/Resource Indirect Costs Production setups Material Handling Cost Driver # of setups # of parts $164,000 $96,000 16 112 24 48 Direct Costs Reduce #units produced $160,000 80,000 N/A Product S #units produced $200,000 N/A 50,000 24. What would be the total indirect overhead costs allocated to each product under Activity-based costing? Total (i.e.. NOT per unit) indirect costs allocated to: Product C Products 25. What is the total average cost per unit (including direct costs) for system? Hint: You will need to use your answer from #24 above in your calculation! each product using an Activity-based costing Total average cost per unit Product S Product C_

Explanation / Answer

Calculate overhead cost :

Calculate average cost per unit

Calculate average cost per unit

Product C Product S Production setup (164000*16/40)=65600 (164000*24/40)=98400 material handling (96000*112/160)=67200 (96000*48/160)=28800 Total indirect overhead cost 132800 127200

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