compute the abc indirect manufacturing cost per unit for each product 645236

Computing indirect manufacturing costs per unit Day, Corp., is considering the use of activity based costing. The following information is provided for the production of two product lines:

Activity	Cost	Cost Driver
Setup	$106,000	Number of setups
Machine maintenance	55,000	Machine hours
Total indirect manufacturing costs	$161,000

 

	Product A	Product B	Total
Direct labor hours	6,500	5,500	12,000
Number of setups	20	180	200
Number of machine hours	1,600	2,400	4,000

Day plans to produce 400 units of Product A and 375 units of Product B.

Requirement

1. Compute the ABC indirect manufacturing cost per unit for each product.