Drilling Company uses activity-based costing and provides this information: Driver Rate Manufacturing Activity Materials handling Machinery Assembly Inspection Number of parts Number of machine hours Drilling has just completed 90 units of a component for a customer. Each unit required 110 parts and 3.50 machine hours. The prime cost is $1,400 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Number of parts Number of finished units Required: 1. Compute the total manufacturing costs and the unit costs of the 90 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $190 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $310 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstream activities. Also compute the relative proportion of each main cost category. Required 1 Required 2 Cost Driver Complete this question by entering your answers in the tabs below. Computation of full cost: Upstream activity costs Required 1 Required 2 Compute the total manufacturing costs and the unit costs of the 90 units just completed using ABC costing. (Round your intermediate and final answers to 2 decimal places.) Manufacturing costs Downstream activity costs Full product cost per unit $ Total manufacturing cost Manufacturing cost per unit Complete this question by entering your answers in the tabs below. Answer is complete but not entirely correct. 129,600.00 $1,440.00 In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $190 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $310 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstream activities. Also compute the relative proportion of each main cost category. (Round your final answers to 2 decimal places. For percentages.1234 = 12.34%.) $ 0.40 61.00 3.35 40.00 $ $ 190.00✔ $ 1,440.00 X $ 310.00✔ 11 1,940.00 9.79% 74.23 % 15.98 % 100.00 % Show less A

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 5PA: Allocating selling and administrative expenses using activity-based costing Arctic Air Inc....
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Drilling Company uses activity-based costing and provides this information:
Driver
Rate
$ 0.40
61.00
3.35
40.00
Manufacturing Activity
Materials handling
Machinery
Assembly
Inspection
Drilling has just completed 90 units of a component for a customer. Each unit required 110 parts and 3.50 machine hours. The prime
cost is $1,400 per finished unit. All other manufacturing costs are classified as manufacturing overhead.
Required:
1. Compute the total manufacturing costs and the unit costs of the 90 units just completed using ABC costing.
2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and
development and product design, is $190 per unit. The total cost of downstream activities, such as distribution, marketing, and
customer service, is $310 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstream
activities. Also compute the relative proportion of each main cost category.
Required 1 Required 2
Cost Driver
Number of parts.
Number of machine hours
Number of parts
Number of finished units
Complete this question by entering your answers in the tabs below.
Compute the total manufacturing costs and the unit costs of the 90 units just completed using ABC costing. (Round your
intermediate and final answers to 2 decimal places.)
Required 1
Computation of full cost:
Upstream activity costs
> Answer is complete but not entirely correct.
Total manufacturing cost
Manufacturing cost per unit
Complete this question by entering your answers in the tabs below.
Manufacturing costs
Downstream activity costs
Full product cost per unit
$
Required 2
In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research
and development and product design, is $190 per unit. The total cost of downstream activities, such as distribution,
marketing, and customer service, is $310 per unit. Compute the full product cost per unit, including upstream, manufacturing,
and downstream activities. Also compute the relative proportion of each main cost category. (Round your final answers to 2
decimal places. For percentages.1234 = 12.34%.)
129,600.00
$ 1,440.00
190.00✔
$ 1,440.00 X
$ 310.00
$ 1,940.00 X
9.79 %
74.23%
15.98 %
100.00 %
Show less
Transcribed Image Text:Drilling Company uses activity-based costing and provides this information: Driver Rate $ 0.40 61.00 3.35 40.00 Manufacturing Activity Materials handling Machinery Assembly Inspection Drilling has just completed 90 units of a component for a customer. Each unit required 110 parts and 3.50 machine hours. The prime cost is $1,400 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required: 1. Compute the total manufacturing costs and the unit costs of the 90 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $190 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $310 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstream activities. Also compute the relative proportion of each main cost category. Required 1 Required 2 Cost Driver Number of parts. Number of machine hours Number of parts Number of finished units Complete this question by entering your answers in the tabs below. Compute the total manufacturing costs and the unit costs of the 90 units just completed using ABC costing. (Round your intermediate and final answers to 2 decimal places.) Required 1 Computation of full cost: Upstream activity costs > Answer is complete but not entirely correct. Total manufacturing cost Manufacturing cost per unit Complete this question by entering your answers in the tabs below. Manufacturing costs Downstream activity costs Full product cost per unit $ Required 2 In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $190 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $310 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstream activities. Also compute the relative proportion of each main cost category. (Round your final answers to 2 decimal places. For percentages.1234 = 12.34%.) 129,600.00 $ 1,440.00 190.00✔ $ 1,440.00 X $ 310.00 $ 1,940.00 X 9.79 % 74.23% 15.98 % 100.00 % Show less
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