Activity-Based Costing
Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities—production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities:
The activity-base usage quantities for each product are as follows:
a.Determine an activity rate for each activity.
b.Assign activity costs to each product and determine the unit activity cost, using the activity rates from part (a). Round unit cost to two decimal places.
c.Assume that each product required one direct labor hour per unit. Determine the per-unit cost if factory overhead is allocated on the basis of direct labor hours. Round your answer to two decimal places.$fill in the blank 27per unit
d.The custom product will consume materials management activities than will the standard product.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here