Answer:
Dobles Corporation
The unit product cost of product D28K is:
$144.01
Explanation:
a) Data and Calculations:
Activity Cost Pools Estimated Overhead Cost Expected Activity
Assembly $228,060 18,000 machine hours
Processing orders $34,068 1,200 orders
Inspection $125,560 1,720 inspection hours
Units of D28K produced per year = 420 units
D28K requirements:
Machine hours 460
Orders 80
Inspections 10
Direct materials cost per unit = $48.96
Direct labor cost per unit = $25.36
Activity rate:
Assembly $228,060/18,000 = $12.67 per machine hour
Processing orders $34,068/1,200 = $28.39 per order
Inspection $125,560/1,720 = $73 per inspection-hour
Cost of D28K:
Machine hours 460 * $12.67 = $5,828
Orders 80 * $28.39 = $22,712
Inspections 10 * $73 = $730
Total overhead costs = $29,270
Overhead cost per unit = $69.69 ($29,270/420)
Unit Cost of D28K:
Direct materials cost per unit = $48.96
Direct labor cost per unit = $25.36
Overhead cost per unit = $69,69
Total unit cost = $144.01
