Rundle Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to makeboth products even though the processes are quite different. The company has recently converted its cost accounting system toactivity-based costing. The following are the cost data that Jane Price, the cost accountant, prepared for the third quarter of the year(during which Rundle made 69,500 tennis racquets and 30,400 badminton racquets).Direct CostDirect materials.Direct laborCategoryUnit levelBatch levelProduct levelFacility levelTotalEstimatedCost$ 651,000281,600160,000720,000$ 1,812,600Tennis Racquet (TR)$ 19.10 per unit33.50 per unitCost DriverNumber of inspection hoursNumber of setupsNumber of TV commercialsNumber of machine hoursRequired BBadminton Racquet (BR)$14.90 per unit24.70 per unitInspectors are paid according to the number of actual hours worked, which is determined by the number of racquets Inspected.Engineers who set up equipment for both products are paid monthly salaries. TV commercial fees are paid at the beginning of thequarter. Facility-level cost includes depreciation of all production equipment.Requireda. Compute the cost per unit for each product.b. If management wants to price badminton racquets 30 percent above cost, what price should the company set?Amount of Cost DriverTR: 14,200 hours; BR: 6,800 hoursTR: 83 setups; BR: 45 setupsTR: 4; BR: 1TR: 31,000 hours; BR: 29,000 hoursComplete this question by entering your answers in the tabs below.Required ACompute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal places.)Type of ProductTennis racquetBadminton racquetCost per Unit< Required ARequired B >

Name: Rundle Sporting Goods Corporation makes two types of racquets, tennis
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Rundle Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to makeboth products even though the processes are quite different. The company has recently converted its cost accounting system