Activity Assembly building Assembling Setting up macies Handling material Packaging building Inspecting and packing Shipping LUST UPiver VOLUME Cost Driver Sport Pro Total Machine-hours 6,000 30,000 36,000 Setup hours 40 400 440 Production runs 8 40 48 Direct labor-hours 60,000 22,800 Number of shipments 100 200 82,800 300 Third Quarter Unit Cost Report, Activity-Based Costing-CenterPoint Manufacturing Facility Direct material Direct labor Assembly Packaging Total direct labor Direct costs Overhead Assembly building Sport $1,500,000 $ 750,000 990,000 $ 1,740,000 $ 3,240,000 $ 180,000 36,000 24,000 300,000 132,000 $ 672,000 $ 3,912,000 Pro $ 2,400,000 $ 600,000 360,000 $960,000 $ 3,360,000 $ 900,000 360,000 120,000 114,000 264,000 $ 1,758,000 Assembling (@$30 per MH) Setting up machines (@ $900 per setup hour) Handling material ($3,000 per run) Packaging building Inspecting and packing (@ $5 per direct labor-hour) Shipping (@$1,320 per shipment) Total ABC overhead Total ABC cost Number of units Unit cost Required: a. Compute the amount of overhead allocated to the Sport and the Pro drones for the first quarter using activity-based costing. cost of a setup hour remains at $900. Assume that all events are the same in the first quarter as in the third quarter except for the number of setup hours. Assume the 100,000 $ 39.12 $ 5,118,000 40,000 $ 127.95 Model Sport Pro Total ABC Overhead
Activity Assembly building Assembling Setting up macies Handling material Packaging building Inspecting and packing Shipping LUST UPiver VOLUME Cost Driver Sport Pro Total Machine-hours 6,000 30,000 36,000 Setup hours 40 400 440 Production runs 8 40 48 Direct labor-hours 60,000 22,800 Number of shipments 100 200 82,800 300 Third Quarter Unit Cost Report, Activity-Based Costing-CenterPoint Manufacturing Facility Direct material Direct labor Assembly Packaging Total direct labor Direct costs Overhead Assembly building Sport $1,500,000 $ 750,000 990,000 $ 1,740,000 $ 3,240,000 $ 180,000 36,000 24,000 300,000 132,000 $ 672,000 $ 3,912,000 Pro $ 2,400,000 $ 600,000 360,000 $960,000 $ 3,360,000 $ 900,000 360,000 120,000 114,000 264,000 $ 1,758,000 Assembling (@$30 per MH) Setting up machines (@ $900 per setup hour) Handling material ($3,000 per run) Packaging building Inspecting and packing (@ $5 per direct labor-hour) Shipping (@$1,320 per shipment) Total ABC overhead Total ABC cost Number of units Unit cost Required: a. Compute the amount of overhead allocated to the Sport and the Pro drones for the first quarter using activity-based costing. cost of a setup hour remains at $900. Assume that all events are the same in the first quarter as in the third quarter except for the number of setup hours. Assume the 100,000 $ 39.12 $ 5,118,000 40,000 $ 127.95 Model Sport Pro Total ABC Overhead
Chapter1: Financial Statements And Business Decisions
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