Hello,MedTech Inc. manufactures and sells diagnostic equipment used in the medical profession. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning four manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $19 per hour and that there were no beginning inventories. The following information was available for 2016, based on an expected production level of 273,684 units for the year. Activity cost driver Budgeted costs for 2016 Cost driver used as allocation base Cost allocation rate Materials handling $5,500,000 Number of parts used $3.25 per part Milling and Grinding $8,600,000 Number of machine hours 12.00 per hour Assembly and inspection 5,000,000 Dired labor hours worked 5.25 per hour Testing 1,300,000 Number of units tested 4.75 per unit The following production, costs, and activities occurred during the month of August. Units produced/tested Direct materials costs Number of parts used Machine hours Direct labor hours 59,000 $3,500,000 275,000 92,000 170,000 Question 5a: Calculate the total manufacturing costs and the cost per unit produced and tested during the month of August for MedTech Inc. (Round "Cost per unit" to 2 decimal places). Total Manufacturing cost? Cost per unit produced and tested:? Thanks.

Hello, MedTech Inc. manufactures and sells diagnostic equipment used in the medical profession. Its job costing system was designed using an activity-based costing approach. Direct materials and...

Hello,

MedTech Inc. manufactures and sells diagnostic equipment used in the medical profession. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning four manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $19 per hour and that there were no beginning inventories. The following information was available for 2016, based on an expected production level of 273,684 units for the year.

Activity cost driver	Budgeted costs for 2016	Cost driver used as allocation base	Cost allocation rate
Materials handling	$5,500,000	Number of parts used	$3.25 per part
Milling and Grinding	$8,600,000	Number of machine hours	12.00 per hour
Assembly and inspection	5,000,000	Dired labor hours worked	5.25 per hour
Testing	1,300,000	Number of units tested	4.75 per unit

The following production, costs, and activities occurred during the month of August.

Units produced/tested	Direct materials costs	Number of parts used	Machine hours	Direct labor hours
59,000	$3,500,000	275,000	92,000	170,000

Question 5a: Calculate the total manufacturing costs and the cost per unit produced and tested during the month of August for MedTech Inc. (Round "Cost per unit" to 2 decimal places).

Total Manufacturing cost?

Cost per unit produced and tested:?

Thanks.

Jun 01, 2022

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Hello, MedTech Inc. manufactures and sells diagnostic equipment used in the medical profession. Its job costing system was designed using an activity-based costing approach. Direct materials and...

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