Required information Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead a plant follow: Materials handling Total G-09 19,800 $7 4 144 a. Using current costing system b. Using proposed ABC system G-09 $ 106,920 53,460 42,768 $ 203,148 Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using mach as the allocation basis). b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. G-35 3,960 $ 19 7 72 Unit Cost G-35

Principles of Accounting Volume 2
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Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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Required information
Heidelberg Fabrication manufactures two products, G-09 and G-35:
Units produced
Direct materials cost per unit
Machine-hours per unit
Production runs per quarter
Machine depreciation
Setup labor
Materials handling
Total
G-09
19,800
Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead a
plant follow:
a. Using current costing system
b. Using proposed ABC system
$7
4
144
G-09
$ 106,920
53,460
42,768
$ 203,148
Required:
a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using mach
as the allocation basis).
b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelwerg.
Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.
G-35
3,960
$19
Unit Cost
7
72
G-35
Transcribed Image Text:Required information Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total G-09 19,800 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead a plant follow: a. Using current costing system b. Using proposed ABC system $7 4 144 G-09 $ 106,920 53,460 42,768 $ 203,148 Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using mach as the allocation basis). b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelwerg. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. G-35 3,960 $19 Unit Cost 7 72 G-35
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