Hello question is attached, thanks. Required:a. Compute the unit costs for the two products V-1 and V-2 using the current costing system at Upriver (using machine hours as theallocation basis). (Do not round intermediate calculations. Round your answers to 2 decimal places.)b. Compute the unit costs for the two products V-1 and V-2 using the proposed ABC system at Upriver. (Do not round intermediatecalculations. Round your answers to 2 decimal places.)Unit CostV-1V-2Using current costing systemа.b.Using proposed ABC system Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the twoproducts follow.V-1V-2Units producedDirect materials cost per unitMachine hours per unitProduction runs per month10,0001,000$1248040Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead atthe plant follow.Machine depreciationSetup laborMaterial handling$36,00018,00014,400$68,400Total

Activity-based costing: Activity-based costing is the method of costing where the overhead cost is assigned to various products. This method of costing establishes the relationship between the manufacturing overhead costs and the activities. The relationship is then implemented for the allocation of indirect costs to the products.

Business

Accounting

a. Compute the unit costs for the two products V-1 and V-2 using the current costing system at Upriver (using machine hours as the allocation basis). (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Compute the unit costs for the two products V-1 and V-2 using the proposed ABC system at Upriver. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a. Compute the unit costs for the two products V-1 and V-2 using the current costing system at Upriver (using machine hours as the allocation basis). (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Compute the unit costs for the two products V-1 and V-2 using the proposed ABC system at Upriver. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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