Question 3 Benny Inc. is a company that produces two different products, Product A and Product B Product A sells for $1,300 per unit and costs 5250 in direct material and $130 in direct labour. Product B sells for $5,000 per unit and costs $1,200 in direct material and 5600 in direct labour. More informtion about the manufacturing overhead of the companyfollows: Activity Purchase orders Machine maintenance Quality inspections Cost driver number of orders number of machine hours number of inspections Total cost Enter your answer here 230000 465000 270000 Total driver use Required Assume the company produces 3400 units of Product A and 2100 units of Product B Calculate Produc A driver use Product is driver use 250 15500 1230 800) 56000) 3600 the cost of producing one unit of Product A and one unit of Product 8 uung Activny sed Costing 5501 40500) 2370

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 3
Benny Inc. is a company that produces two different products, Product A and Product
Product A sells for $1.300 per unit and costs $250 in direct material and $130 in direct labour.
Product B sells for $5,000 per unit and costs $1,200 in direct material and 5600 in direct labour.
More informtion about the manufacturing overhead of the companyfollows:
Total cost
Activity
Purchase orders
Machine maintenance
Quality inspections
Cost driver
number of orders
number of machine hours
number of inspections
Him
Total driver use
230000
465000
270000
Produc A driver use Product is driver use
250
15500
1230
800
56000
3600
Required
Assume the company produces 3400 units of Product A and 2100 units of Product B
Calculate the cost of producing one unit of Product A and one unit of Product 8 uung Activny Based Costing
Enter your answer here
550
40500)
2370
Transcribed Image Text:Question 3 Benny Inc. is a company that produces two different products, Product A and Product Product A sells for $1.300 per unit and costs $250 in direct material and $130 in direct labour. Product B sells for $5,000 per unit and costs $1,200 in direct material and 5600 in direct labour. More informtion about the manufacturing overhead of the companyfollows: Total cost Activity Purchase orders Machine maintenance Quality inspections Cost driver number of orders number of machine hours number of inspections Him Total driver use 230000 465000 270000 Produc A driver use Product is driver use 250 15500 1230 800 56000 3600 Required Assume the company produces 3400 units of Product A and 2100 units of Product B Calculate the cost of producing one unit of Product A and one unit of Product 8 uung Activny Based Costing Enter your answer here 550 40500) 2370
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