(Solved Homework): der the following schedule of information for two products: Cups and Dishes:…

Consider the following schedule of information for two products: Cups and Dishes:

Activity Activity Cost Pool Cost Driver Product Line Cost Driver Quantity for Product Line Product Line Production Volume
Shaping $90,000 Machine Hours Cups 30,000 10,000
Dishes 6,000 3,000

Determine the shaping cost (activity cost) per unit for Dishes.

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Expert Answer

 

Activity rate for shaping cost = $ 90000 / ( 30000 + 6000 ) = $ 2.5

Shaping cost for per unit of cups =

( 30000 * 2.5 ) / 10000 units = $ 7.5 per cup

Shaping cost for per unit of dishes =

( 6000 * 2.5 ) / 3000 = $ 5 per dish

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