Answer:
Explanation:
The computations are shown below:
(A) Activity rates:
Fabrication = $1,200,000 ÷ 80,000 = $15 per dlh
Assembly = $48000,000 ÷ 80,000 = $6 per dlh
Setup = = $400,000 ÷ 1,000 = $400 per setup
Materials Handling = $320,000 ÷ 1,600 = $200 per move
(B) Factory overhead cost per unit:
Standard:
Overhead total costs: 20,000 × $15 + 60,000 × $6 + 120 × $400 + 200 × $200 = $748,000
Overhead cost per unit = $748,000 ÷ 20,000 = $37.40
Deluxe:
Overhead total costs: 60,000 × $15 + 20,000 × $6 + 880 × $400 + 1400 × $200 = $1,652,000
Overhead cost per unit = $1,652,000 ÷ 20,000 = $82.60