Managerial Accounting ECO 374.02 Spring 2013Homework #5Due date: Mar 23 2013
: Job 607 was recently completed. The following data have been recorded:Direct materials $3,405Direct labor-hours 54 labor hoursDirect labor wage rate $13 per labor hour Machine hours 158 machine hoursThe company applies manufacturing overhead on the basis of machine hours. The predeterminedoverhead rate is $14 per machine-hour. Calculate the total cost that would be recorded for Job607.
: Matt Company uses activity-based costing. The company has 2 products: A and B.The annual production and sales of Product A is 8,000 units and of Product B is 6,000 units.There are 3 activity cost pools, with estimated total cost and expected activity as follows:
Activity Cost Pool Estimated Cost
Activity 1 $20,000 100 400 500Activity 2 $37,000 800 200 1000Activity 3 $91,200 800 3000 3800What is the cost per unit of Product A under activity-based costing?
Drewniak Corporation has provided the following data from its activity-based costing system:The company makes 430 units of product O37W a year, requiring a total of 690 machine-hours,40 orders, and 10 inspection-hours per year. The product's direct material cost is $35.72 per unitand its direct labor cost is $29.46 per unit.According to the activity-based costing system, the average manufacturing cost of productO37W is closest to:A. $94.11 per unitB. $89.72 per unitC. $65.18 per unitD. $92.49 per unit