Use the info in the first image to answer the spaces in the second image: Two-St

Question

Use the info in the first image to answer the spaces in the second image:

Two-Stage ABC for Manufacturing Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year Activity Cost Pool Activity Cost Activity Cost Driver Machine setup Material handling Machine operation 600,000 12,000 setup hours 120,000 2,000 material moves 500,000 10,000 machine hours The following data are for the production of single batches of two products, C23 Cams and U2 Shafts during the month of August: C23 Cams U2Shafts Units produced Machine hours Direct labor hours Direct labor cost Direct materials cost Tons of materials Setup hours 300 500 4 200 400 $5,000 $10,000 $20,000 $30,000 13 7

Explanation / Answer

Calculate unit cost :

C23 Cams U2 Shafts Direct materials 30000 20000 Direct labour 5000 10000 Manufacturing overhead Machine setups 150 350 Material handling 780 480 Machine operation 100000 75000 Total job costs 135930 105830 Units produced 500 300 Cost per unit produced 271.86 352.77

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