I'm trying to find the product cost of the P28 product for the two different plants listed in the question (Moncton, and Fredericton). The pictures I included contain the information frm the question. I'm confused on how to use the information provided to come up with my two answers. I've provided all information available. Integrative Cases 6-63 (Algo) Product Costing and Decision Making (LOo 6-1, 2, 3, 4)Brunswick Parts Isa small manufacturing firm located In eastern Canada. The company, founded in 1947, produces metal parts formany of the larger manufacturing firms located in both Canada and the United States. It prides Itself on high quality and customerservice, and many of Its customers have been buying at least some of their parts from Brunswick siınce the 1950s.Production of the parts takes place in one of two plants. The older plant, located in Fredericton, was purchased when the companywas founded, and the last major Improvements to the plant took place In the 1970s. A newer plant, located In Moncton, was bult in1995 to take advantage of the expanding markets. The same part can be produced in either plant, and the final schedulng decision Isbased on capacity, transportation costs, and production costs.At a weekly production meeting, Sara Hunter, the manufacturing manager expresses her frustration at trying to schedule production.Something isn't right. We buld a new plant to take advantage of new manufacturing technology and we struggle to keep It filled. Wedidn't have this problem a few years ago when we couldn't keep up with demand, but with the current economy, marketing keepssending orders to the old plant In Fredericton. I know manufacturing, but I guess I must not understand accounting.The latest order that generated discussion among plant management was placed by Lawrence Machine Tool Company, a long-timecustomer. The order called for 1,000 units of a special rod (P28) used In one of Its many products. The order was recelved by themarketing department. Following the established procedure at Brunswick, the marketing manager checked the product costs for bothplants. Because quality and transportation costs would be the same from either plant, a decision was made to produce and ship fromthe Fredericton plant.The cost system at Brunswick Is a traditional manufacturing cost system. Plant overhead (Including plant depreciation) Is allocated toproducts based on estimated production for the perlod. Separate overhead rates are computed for each plant. Corporateadministration costs are allocated to the plants based on the estimated production In the plant for purposes of executive performancemeasurement. Production is measured by direct labor-hours. Cost and production Information for P28 follows. Per unit of P28MonctonFrederictonDirect material (1 kilogram @ $22)$225 hours$22Direct labor-hours6 hoursDirect labor wage rate$8$9Corporate and plant overhead budgets are as follows:CorporateAdministrationMonctonFrederictonCorporateMarketing$220, 900170, 000170, e00220, 000R&DDepreciationGeneral administrationPlant overhead (before corporate allocations):Supervision170, 000270, eee758, 000170, e0e$220, 000406, 000Indirect laborDepreciation120, 000Miscellaneous220, a0eTotal$780, eee$1,368, 000$956, 8e৪Estimated production (direct labor-hours):114,eee138, 00eRequlred:a. What would be the reported product cost of P28 per unit for the two plants?Product CostMonctonper unitFrederictonper unit

Product cost refers to the expenses incurred by a company in the process of manufacturing of…

Answered: 'm trying to find the product cost of…

10th Edition

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Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q