Business, 14.04.2020 22:28 alexisbreton

Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year: Activity Cost Pool Activity Cost Activity Cost Driver Machine setup $576,000 12,000 setup hours Material handling 96,000 2,000 material moves Machine operation 500,000 10,000 machine hours The following data are for the production of single batches of two products, C23 Cams and U2 Shafts during the month of August: C23 Cams U2 Shafts Units produced 500 300 Machine hours 4 5 Direct labor hours 200 400 Direct labor cost $3,000 $8,000 Direct materials cost $28,000 $18,000 Tons of materials 13 8 Setup hours 3 7 Determine the unit costs of C23 Cams and U2 Shafts using ABC. Round cost per gallon to two decimal places.

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