Activity.
Materials
Assembling
Packaging
Est. Indirect
Activity Costs
$70,000
$265,000
$80,000
Allocation base
Material moves
Direct labor hours
# of finished units
Cost allocation rate
$5/move
$10/dir. labor hour
$2/finished unit
The following parts were produced in October with the following information:
Part
ABC
C
# Produced
2,050
4,000
4,850
Materials Costs
#Moves
Dir. Labor Hrs.
$3,000
800
350
$5,500
1,500
325
$8,000
2,200
1,700
Total unit costs for Part A is closest to (round to two decimal points)
A. $6.06
B. $6.59
C. $18.25
D. $7.12