Martinez Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below: Activity Cost Pools Ordering and Receiving Machine Setup Machining Assembly Inspection Budget $ Cost Driver Deluxe $ Orders Setups Machine hours Parts Inspections Est. Overhead Overhead cost per unit per unit $139,000 per unit 306,000 1,018,000 1,618,000 309,000 Est. Use of Cost Drivers Budget 600 500 150,000 Deluxe 550 400 Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round per machine hour and per part values to 3 decimal places, e.g. 52.711. Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost assigned to O decimal places, e.g. 2,500.) 400 100,000 1,200,000 800,000 450
Martinez Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below: Activity Cost Pools Ordering and Receiving Machine Setup Machining Assembly Inspection Budget $ Cost Driver Deluxe $ Orders Setups Machine hours Parts Inspections Est. Overhead Overhead cost per unit per unit $139,000 per unit 306,000 1,018,000 1,618,000 309,000 Est. Use of Cost Drivers Budget 600 500 150,000 Deluxe 550 400 Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round per machine hour and per part values to 3 decimal places, e.g. 52.711. Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost assigned to O decimal places, e.g. 2,500.) 400 100,000 1,200,000 800,000 450
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Martinez Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information
is presented below:
Activity Cost Pools
Ordering and Receiving
Machine Setup
Machining
Assembly
Inspection
Budget $
Cost Driver
Deluxe $
Orders
Setups
Machine hours
Parts
Inspections
Est. Overhead
Overhead cost per unit
per unit
$139,000
per unit
306,000
1,018,000
1,618,000
309,000
Est. Use of Cost Drivers
Budget
600
500
150,000
1,200,000
550
Deluxe
400
Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round per
machine hour and per part values to 3 decimal places, e.g. 52.711. Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost
assigned to 0 decimal places, e.g. 2,500.)
400
100,000
800,000
450
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