1. Columbus Co. has determined the following activity cost pools and cost driver levels for the year:
Activity Cost Pool Activity Cost Activity Cost Driver
machine setup $500,000 11,500 setup hours
material handling $130,000 2,500 tons of material
machine operation $475,000 11,000 machine hours
The following data is for the production of one batch of product X:
units produced 400
machine hours 5
direct labor hours 180
direct labor costs $6,000
direct materials cost $50,000
tons of material 14
setup hours 6
Required:
Part A: Determine the cost allocation rate for each activity. (round to two decimals.)
Part B: Using the cost allocation rate calculated in Part A allocate indirect manufacturing costs to each activity.
Part C: Calculate the total product cost for a single batch of product X.
Part D: Calculate the total product cost per unit of each product X.
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