Question

Bloom’s has the following estimates for the upcoming year:

Answer 1

Bloom’s has the following estimates for the upcoming year:

Activity Cost Pool Estimated Overhead Cost Activity Rate

Machine-hours $63,450 $2.70 per machine-hour

Machine setups $45,900 $170 per setup

Product testing $119,000 $119 per test

Cost and activity information for two of Bloom’s products is as follows:

P34 W85

Direct materials $33,500 $29,750

Direct labor $18,500 $26,000

Machine-hours 1,470 1,170

Machine setups 22 77

Tests 47 47

Number of units

produced during the year 10,000 25,000

Required:

Compute the unit product cost for product P34.Bloom’s has the following estimates for the upcoming year:

Activity Cost Pool Estimated Overhead Cost Activity Rate

Machine-hours $63,450 $2.70 per machine-hour

Machine setups $45,900 $170 per setup

Product testing $119,000 $119 per test

Cost and activity information for two of Bloom’s products is as follows:

P34 W85

Direct materials $33,500 $29,750

Direct labor $18,500 $26,000

Machine-hours 1,470 1,170

Machine setups 22 77

Tests 47 47

Number of units

produced during the year 10,000 25,000

Required:

Compute the unit product cost for product P34.Bloom’s has the following estimates for the upcoming year:

Activity Cost Pool Estimated Overhead Cost Activity Rate

Machine-hours $63,450 $2.70 per machine-hour

Machine setups $45,900 $170 per setup

Product testing $119,000 $119 per test

Cost and activity information for two of Bloom’s products is as follows:

P34 W85

Direct materials $33,500 $29,750

Direct labor $18,500 $26,000

Machine-hours 1,470 1,170

Machine setups 22 77

Tests 47 47

Number of units

produced during the year 10,000 25,000

Required:

Compute the unit product cost for product P34.

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