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Company X produces two product lines: T and S. Company X's managers have decide...
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Company X produces two product lines: T and S.
Company X's managers have decided to revise their current assignment of overhead
costs to reflect the following ABC cost information:
Activity
|
Activity cost
|
Activity-cost driver
|
Supervision
|
$144840
|
Direct labor hours (DLH)
|
Inspection
|
$135060
|
Inspections
|
Activities Demanded
T
|
S
|
0.75 DLH/unit
|
1.60 DLH/unit
|
54000 DLHs
|
48000 DLHs
|
50000 inspections
|
20000 inspections
|
Under the revised ABC system, knowing that Company X produces and sells 72000 units of product T and 30000 units of product S, overhead costs per unit for product S will be:
0%
0%
0%
0%
0%