Drilling Company uses activity-based costing and provides this information: Driver Rate Manufacturing Activity Materials handling Machinery Assembly Inspection Cost Driver Required 1 Number of parts Number of machine hours Required 2 Number of parts Number of finished units Drilling has just completed 74 units of a component for a customer. Each unit required 94 parts and 2.70 machine hours. The prime cost is $1,240 per finished unit. All other manufacturing costs are classified as manufacturing overhead. $ 0.60 45.00 Required: 1. Compute the total manufacturing costs and the unit costs of the 74 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 $174 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $294 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. Computation of full cost: Upstream activity costs Manufacturing costs Complete this question by entering your answers in the tabs below. 2.55 24.00 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 $174 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $294 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%.) % % Show less A
Drilling Company uses activity-based costing and provides this information: Driver Rate Manufacturing Activity Materials handling Machinery Assembly Inspection Cost Driver Required 1 Number of parts Number of machine hours Required 2 Number of parts Number of finished units Drilling has just completed 74 units of a component for a customer. Each unit required 94 parts and 2.70 machine hours. The prime cost is $1,240 per finished unit. All other manufacturing costs are classified as manufacturing overhead. $ 0.60 45.00 Required: 1. Compute the total manufacturing costs and the unit costs of the 74 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 $174 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $294 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. Computation of full cost: Upstream activity costs Manufacturing costs Complete this question by entering your answers in the tabs below. 2.55 24.00 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 $174 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $294 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%.) % % Show less A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Drilling Company uses activity-based costing and provides this information:
Driver
Rate
Manufacturing Activity
Materials handling
Machinery
Assembly
Inspection
Cost Driver
Drilling has just completed 74 units of a component for a customer. Each unit required 94 parts and 2.70 machine hours. The prime
cost is $1,240 per finished unit. All other manufacturing costs are classified as manufacturing overhead.
Required 1
Number of parts
Number of machine hours
Number of parts
Number of finished units
Required:
1. Compute the total manufacturing costs and the unit costs of the 74 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 $174 per unit. The total cost of downstream activities, such as distribution, marketing, and
customer service, is $294 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 2
$ 0.60
45.00
2.55
24.00
Complete this question by entering your answers in the tabs below.
Computation of full cost:
Upstream activity costs
Manufacturing costs
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 $174 per unit. The total cost of downstream activities, such as distribution,
marketing, and customer service, is $294 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%.)
do do
%
%
Show less ▲
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