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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Determine the unit cost for making products X and Z in Prob.17.7 using activity-based costing. Use the cost drivers in Example 17.5, but omit automated assembly. The resources used on a per-batch basis are:
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Prob.17.7
The accounting department established the costs given in the following table for producing two products, X and Z, over a given time period.
(a) Give an example of typical costs that would be put in each of the 10 cost categories listed.
(b) Determine the overhead and unit cost for each product in terms of direct labor cost.
(c) Determine the overhead and unit cost for each product on the basis of direct labor hours (DLH).
(d) Determine the overall overhead rate per DLH and use it to determine the unit cost of product X.
(e) Determine the overhead and unit cost for each product on the basis of the proportion of direct material costs.


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