a. Compute the unit costs for the two products, G-09 and G-35, using the CL as the allocation basis). b. Compute the unit costs for the two products, G-09 and G-35, using the pr Note: For all requirements, do not round intermediate calculations. ROL

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
$ 7
4
144
Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overh
plant follow:
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
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
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 $ 7 4 144 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overh plant follow: 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 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 Unit Cost 7 72 G-35
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