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Finance

problem: VG Company has identified the following cost pools and cost drivers:

COST POOLS	ACTIVITY COST	COST DRIVERS
Machine Setup	$360,000	6000 setup hours
Materials Handling	$100,000	50,000 pounds of material
Electric Power	$40,000	80,000 kilowatt hours

The following information pertains to the production of V203 and G179:

ITEMS	V203	G179
Number of units produced	5,000	15,000
Direct Materials Cost	$25,000	$33000
Direct Labor Cost	$14,000	$16,000
Number of Setup Hours	120	150
Pounds of Material Used	5,000	10,000
Kilowatt Hours	2,000	3,000

find out the unit cost for every of the two products using activity based costing.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M916125

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