Consider the following data for two products of Gitano Manufacturing. (Loss amou

Question

Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and "OH rate and cost per unit answers to 2 decimal places) Product A Product B Number of units produced 12, 500 units 1,700 units Direct labor cost (e $31 per DLH)0.13 DLR per unit0.26 DL per unit Direct materials cost $ 1.70 per unit s 2.10 per unit Overhead costa s 36,069 62,000 Activity Machine setup Materials handling Quality control inspections 1,760 $179,829 Required Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product

Explanation / Answer

Product A

Material cost per unit=1.7

Direct labour cost per unit=4.03(.13*31)

Overhead cost per unit=11.31(179829*1625/2067/12500)

Total production cost per unit=17.04

Product B

Material cost per unit=2.10

Direct labour cost per unit=8.06(.26*31)

Overhead cost per unit=22.62(179829*442/2067/1700)

Total production cost per unit=32.78

Note 1 overhead cost is allocated in the ratio of direct labour hour and than divided by total units of production

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.