Klumper Corporation is a diversified manufacturer of industrial goods. The company's ABC system has the following six activity cost pools and activity rates: Activity Cost Pool Labour related Machine related Machine setups Production orders Shipments General factory Activity Rates $ 18.00 per direct labour-hour 18.00 per machine-hour 50.00 per setup 120.00 per order 18.00 per shipment 38.00 per direct labour-hour Cost and activity data have been supplied for the following products: K425 M67 Direct materials cost per unit Direct labour cost per unit Number of units produced per year $126.00 $ 11.50 $212.00 $ 7.20 4,000 400 Total Expected Activity K425 M67 1,000 3,000 Direct labour-hours Machine-hours Machine setups Production orders Shipments 160 200 6 20
Klumper Corporation is a diversified manufacturer of industrial goods. The company's ABC system has the following six activity cost pools and activity rates: Activity Cost Pool Labour related Machine related Machine setups Production orders Shipments General factory Activity Rates $ 18.00 per direct labour-hour 18.00 per machine-hour 50.00 per setup 120.00 per order 18.00 per shipment 38.00 per direct labour-hour Cost and activity data have been supplied for the following products: K425 M67 Direct materials cost per unit Direct labour cost per unit Number of units produced per year $126.00 $ 11.50 $212.00 $ 7.20 4,000 400 Total Expected Activity K425 M67 1,000 3,000 Direct labour-hours Machine-hours Machine setups Production orders Shipments 160 200 6 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Answer of the required section
Transcribed Image Text:Required:
Compute the unit product cost of each of the products listed above. (Round your answers to 2 decimal places.)
K425
M67
Unit product cost
Transcribed Image Text:Klumper Corporation is a diversified manufacturer of industrial goods. The company's ABC system has the following six activity cost
pools and activity rates:
Activity Cost Pool
Labour related
Machine related
Machine setups
Production orders
Shipments
General factory
Activity Rates
$ 18.00 per direct labour-hour
18.00 per machine-hour
50.00 per setup
120.00 per order
18.00 per shipment
38.00 per direct labour-hour
Cost and activity data have been supplied for the following products:
K425
M67
Direct materials cost per unit
Direct labour cost per unit
Number of units produced per year
$126.00
$ 11.50
$212.00
$ 7. 20
4,000
400
Total
Expected
Activity
M67
K425
1,000
3,000
6.
160
Direct labour-hours
Machine-hours
Machine setups
Production orders
Shipments
200
3
3
6.
3
20
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