Mercer University Operations And Supply Chain Management Assignment Help - Accounting Help!

Question - Ok so here are the correct numbers to put in. I have the Traditional portion correct, I would like to see
the ABC portion of this with these numbers worked out, because I'm at the end of the equation but
with these numbers please:

Exercise 3-7 Contrast ABC and Conventional Product Costs [LO2, LO3, LO4]
Kunkel Company makes two products and uses a conventional costing system in which a single
plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two
products for the upcoming year follow:

Mercon Wurcon
Direct materials cost per unit $ 12.90 $ 21.40
Direct labor cost per unit $ 5.40 $ 3.50
Direct labor-hours per unit 0.48 0.26
Number of units produced 21,000 72,000


These products a ...Read More re customized to some degree for specific customers.

Required:
1.
The company's manufacturing overhead costs for the year are expected to be $696,960. Using
the company's conventional costing system, compute the unit product costs for the two
products. (Do not round intermediate calculation. Round your final answers to 2 decimal
places.)

Mercon Wurcon
Unit product cost $ $


2.
Management is considering an activity-based costing system in which half of the overhead would
continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis
of engineering design time. This time is expected to be distributed as follows during the upcoming
year:

Mercon Wurcon Total
Engineering design time (in hours) 2,300 2,100 4,400

Compute the unit product costs for the two products using the proposed ABC system. (Round your
final answers to 2 decimal places.)

Mercon Wurcon
Unit product cost $ $ ...Read Less

Solution Preview - No Solution Preview Available

Original Question Documents

N/A