Homework answers / question archive / ABC Company is manufacturing two (2) products called Robots and Race cars RobotsRace CarsTotal50,000250,000-

ABC Company is manufacturing two (2) products called Robots and Race cars RobotsRace CarsTotal50,000250,000-

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ABC Company is manufacturing two (2) products called Robots and Race cars RobotsRace CarsTotal50,000250,000-

. Activity usage and costs details are given below. 

 

 

Units Produced

Prime costs

$200,000

$750,000

$950,000

Machine hours

20,000

10,000

30,000

Number of setups

25

75

100

Number of moves

140

210

350

Inspection hours

1,200

2,800

4,000

 

Overhead costs:Machining          $150,000

Setting up            $80,000

Moving materials      $70,000

Inspecting products    $50,000

 

Calculate the unit costs using activity rates for both Robots and Race cars, 

Answer 1

Choose...

Robots $1.45 and Race cars $18.74

Robots $4 and Race cars $3

Not enough information

None of the answers is correct.

Robots $3.26 and Race cars $0.75

Robots $7.26 and Race cars $3.75

Robots $0.80 and Race cars $15

Calculate the overhead cost per unit for both Robots and Race cars

Answer 2

Choose...

Robots $1.45 and Race cars $18.74

Robots $4 and Race cars $3

Not enough information

None of the answers is correct.

Robots $3.26 and Race cars $0.75

Robots $7.26 and Race cars $3.75

Robots $0.80 and Race cars $15