Heidelberg Fabrication manufactures two products, G-09 and G-35: G-09 18,300 Units produced Direct materials cost per unit. Machine-hours per unit Production runs per quarter $7 4 144 G-35 3,660 $19 7 72 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing over plant follow:

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
18,300
$7
Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the
plant follow:
a. Using current costing system
b. Using proposed ABC system
4
144
$ 98,820
49,410
39,528
$ 187,758
G-09
Required:
a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours
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
3,660
Unit Cost
$ 19
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 18,300 $7 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: a. Using current costing system b. Using proposed ABC system 4 144 $ 98,820 49,410 39,528 $ 187,758 G-09 Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours 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 3,660 Unit Cost $ 19 7 72 G-35
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