1. Business
  2. Accounting
  3. twostage abc for manufacturing meridian company has determined its activity...

Question: twostage abc for manufacturing meridian company has determined its activity...

Question details

Two-Stage ABC for Manufacturing
Meridian Company has determined its activity cost pools and cost drivers to be the following:

Cost pools
Setup $35,000
Material handling 12,800
Machine operation 280,000
Packing 30,000
Total indirect manufacturing costs $357,800
Cost drivers
Setups 350
Material moves 640
Machine hours 20,000
Packing orders 1,200

One product made by Meridian, metal casements, used the following activities during the period to produce 500 units:

Setups 20
Material moves 80
Machine hours 1,900
Packing orders 150

(a) Calculate the cost per unit of activity for each activity cost pool.

Setup $Answer
Material handling $Answer
Material operation $Answer
Packing $Answer


(b) Calculate the manufacturing overhead cost per metal casement manufactured during the period. Round your answer to the nearest cent.
$Answer

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution