Johnstone Corp. manufactures hand-wired and solid state tube amplifiers. The following data have been summarized: (Click the icon to view the data.) The company plans to manufacture 250 units of the hand-wired amps and 750 units of the solid state amps. Calculate the product cost per unit for both products using activity-based costing. (Round your answers to the nearest cent.) Begin by selecting the formula to allocate overhead (OH) costs. Data table Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit Indirect manufacturing cost information includes the following: Predetermined Overhead Allocation Rate Activity Setup Inspections Machine maintenance $1,000 per setup $1,300 per inspection hour $10 per machine hour Hand-Wired $ ? ... 1,900 $ 2,400 Hand-Wired Allocated mfg. overhead costs Solid State 32 setups 35 inspection hours 2,100 machine hours 800 800 ? Solid State 32 setups 30 inspection hours 1,600 machine hours - X

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Johnstone Corp. manufactures hand-wired and solid state tube amplifiers. The following data have been summarized:
(Click the icon to view the data.)
The company plans to manufacture 250 units of the hand-wired amps and 750 units of the solid state amps. Calculate the product cost per unit for both products using activity-based costing.
(Round your answers to the nearest cent.)
Begin by selecting the formula to allocate overhead (OH) costs.
Data table
Direct materials cost per unit
Direct labor cost per unit
Indirect manufacturing cost per unit
X
Indirect manufacturing cost information includes the following:
Predetermined Overhead
Allocation Rate
Activity
Setup
Inspections
Machine maintenance
$1,000 per setup
$1,300 per inspection hour
$10 per machine hour
Print
Hand-Wired
$
=
Done
1,900 $
2,400
?
Hand-Wired
Allocated mfg.
overhead costs
Solid State
32 setups
35 inspection hours
2,100 machine hours
800
800
?
Solid State
32 setups
30 inspection hours
1,600 machine hours
-
X
Clear all
Check answer
Transcribed Image Text:Johnstone Corp. manufactures hand-wired and solid state tube amplifiers. The following data have been summarized: (Click the icon to view the data.) The company plans to manufacture 250 units of the hand-wired amps and 750 units of the solid state amps. Calculate the product cost per unit for both products using activity-based costing. (Round your answers to the nearest cent.) Begin by selecting the formula to allocate overhead (OH) costs. Data table Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit X Indirect manufacturing cost information includes the following: Predetermined Overhead Allocation Rate Activity Setup Inspections Machine maintenance $1,000 per setup $1,300 per inspection hour $10 per machine hour Print Hand-Wired $ = Done 1,900 $ 2,400 ? Hand-Wired Allocated mfg. overhead costs Solid State 32 setups 35 inspection hours 2,100 machine hours 800 800 ? Solid State 32 setups 30 inspection hours 1,600 machine hours - X Clear all Check answer
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