Two-Stage ABC for Manufacturing Detroit Foundry, a large manufacturer of heavy equipment components, has determined...
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Two-Stage ABC for Manufacturing Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year: Activity Cost Pool Activity Cost Activity Cost Driver Machine setup $576,000 12,000 setup hours Material handling 96,000 2,000 material moves Machine operation 500,000 10,000 machine hours The following data are for the production of single batches of two products, C23 Cams and U2 Shafts during the month of August: C23 Cams U2 Shafts 500 300 Units produced Machine hours 4 5 200 Direct labor hours Direct labor cost Direct materials cost Tons of materials Setup hours 400 $8,000 $18,000 $3,000 $28,000 13 3 8 7 Determine the unit costs of C23 Cams and U2 Shafts using ABC. Round cost per gallon to two decimal places. Product Costs C23 Cams U2 Shafts Direct materials $ 0 $ $ 0 Direct labor 0 0 Manufacturing overhead: Machine setups 0 0 Material handling 0 0 Machine operation 0 0 0 Total job costs 0 $ 0 $ 0 $ 0 Total job costs Units produced Cost per unit produced 0 0 $ $ 0 $ 0
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