(Answered) Using abc to compute product costs per unitjaunkas corp

Accounting

Using ABC to compute product costs per unit

Jaunkas, Corp., manufactures mid-fi and hi-fi stereo receivers. The following data have been summarized:

	Mid-Fi	Hi-Fi
Direct materials cost per unit	$ 400	$ 1,300
Direct labor cost per unit	400	300
Indirect manufacturing cost per unit	?	?

Indirect manufacturing cost information includes the following:

Activity	Allocation Rate	Mid-Fi	Hi-Fi
Setup	$1,700/per setup	39 setups	39 setups
Inspections	$ 400/per hour	45 hours	15 hours
Machine maintenance	$ 10/per machine hour	1,900 machine hours	1,200 machine hours

The company plans to manufacture 200 units of the mid-fi receivers and 250 units of the hi-fi receivers.

Requirement

1. Calculate the product cost per unit for both products using activity-based costing.

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