ABC company manufactures two type of products product Y product X, and applies manufacturing overhead to all units at the rate of $80 per machine hour. Below are the production information Product Y Product X Direct material $40 $65 Direct labor $25 $25 Budgeted volume (units) 16,000 30,000 Manufacturing setup Product shipping $1,120,000 Cost $1,344,000 Cost driver Number of setup Outgoing shipments Product Y Product X 100 60 Number of setup 32,000 45,000 Machine hour 200 150 Outgoing shipments . Compute the product cost per unit for each type of product under the traditional and ABC method. Machine processing $3,696,000 Machine hour

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ABC company manufactures two type of products product Y product X, and applies
manufacturing overhead to all units at the rate of $80 per machine hour. Below are the
production information
Product Y
Product X
Direct material
$40
$65
Direct labor
$25
$25
Budgeted volume (units)
16,000
30,000
Manufacturing setup
Product shipping
$1,120,000
Cost
$1,344,000
Cost driver
Number of setup
Outgoing shipments
Product Y
Product X
100
60
Number of setup
Machine hour
32,000
45,000
200
150
Outgoing shipments
.
Compute the product cost per unit for each type of product under the traditional and
ABC method.
Machine processing
$3,696,000
Machine hour
Transcribed Image Text:ABC company manufactures two type of products product Y product X, and applies manufacturing overhead to all units at the rate of $80 per machine hour. Below are the production information Product Y Product X Direct material $40 $65 Direct labor $25 $25 Budgeted volume (units) 16,000 30,000 Manufacturing setup Product shipping $1,120,000 Cost $1,344,000 Cost driver Number of setup Outgoing shipments Product Y Product X 100 60 Number of setup Machine hour 32,000 45,000 200 150 Outgoing shipments . Compute the product cost per unit for each type of product under the traditional and ABC method. Machine processing $3,696,000 Machine hour
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