I got question 1 right i just need help with question 2 Maker Company has...
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Accounting
I got question 1 right i just need help with question 2
Maker Company has identified the following overhead activities, costs, and activity drivers for the coming year:
Activity
Expected Cost
Activity Driver
Activity Capacity
Setting up equipment
$515,970
Number of setups
630
Ordering costs
368,000
Number of orders
18,400
Machine costs
852,000
Machine hours
42,600
Receiving
364,000
Receiving hours
10,400
Maker produces two models of dishwashers with the following expected prime costs and activity demands:
Model A
Model B
Direct materials
$645,000
$801,000
Direct labor
464,000
478,000
Units completed
15,000
7,600
Direct labor hours
5,800
2,000
Number of setups
400
230
Number of orders
6,300
12,100
Machine hours
23,700
18,900
Receiving hours
3,500
6,900
The company's normal activity is 7,800 direct labor hours.
Required:
1. Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent.
model a = 178.04
model b=239.14
2. Determine the unit cost for each model using the four activity drivers. round to nearest cent
model a =
model b=
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