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XY manufactures a range of products and uses an activity based costing system.
Budgeted production of Product B is 7,500 units.
Overheads have been identified by activity and related to appropriate cost drivers.
Product B is produced in batches of 250 units. Machines have to be reset after every batch and quality inspections are carried out on every third batch.
What is the total overhead cost per unit of Product B?
Give your answer to two decimal places.
Suggested Answer: A, B, C
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38 comments · newest first
TO
Tony
11 months ago
Wait, are we sure about those calculations? Sounds off to me.
AR
Artie
11 months ago
Totally agree, resetting machines adds up too!
CH
Chanel
12 months ago
Not sure about that, seems a bit low for all those inspections.
MA
Maricela
12 months ago
I think the overhead cost per unit is $1.40.
AL
Alaine
12 months ago
The budgeted production is 7,500 units.
AH
Ahmed
1 year ago
I think the total overhead cost per unit should be calculated by dividing the total overhead by the number of units produced, but I need to double-check the batch sizes.
ME
Merlyn
1 year ago
I feel a bit confused about how to account for the quality inspections. Do we include those costs in the total overhead for each unit?
NE
Nelida
1 year ago
This question seems similar to one we did in class about overhead allocation. I think we need to consider the number of batches for Product B.
SU
Susana
1 year ago
I remember we practiced calculating overhead costs using activity-based costing, but I'm not sure how to apply it to the batch production here.
MA
Maile
1 year ago
This seems doable, but I want to double-check my work. I'll make sure to show all my calculations step-by-step to maximize my chances of getting full credit.
SH
Sherell
1 year ago
Okay, I think I've got a handle on this. I'll need to determine the total overhead costs, then divide by the budgeted production volume to get the overhead cost per unit.
AL
Alpha
1 year ago
Hmm, I'm a bit unsure about how to handle the batch-level costs for the machine setups and quality inspections. I'll need to make sure I calculate those correctly.
BO
Boris
1 year ago
This looks like a pretty straightforward activity-based costing question. I'll need to identify the relevant cost drivers and allocate the overhead costs accordingly.
LO
Louisa
1 year ago
I'm a bit confused by the different options here. Can someone explain the differences between them? I want to make sure I understand the right sequence before selecting an answer.
PR
Providencia
1 year ago
This looks like a straightforward ARM template deployment question. I'll need to review the available resources and options to determine the appropriate command to use.
FL
Fletcher
1 year ago
Wait, I'm a bit confused. Does the question mean if OIDC is supported by Okta, or if it's supported by applications in the Okta network? I'll need to read this carefully.
GL
Glenn
2 years ago
I bet the answer is going to be something like $1.40... *looks at options* Yup, nailed it! *high-fives self*
DO
Doug
1 year ago
That was an easy one!
DO
Douglass
1 year ago
I knew it! *high-fives back*
RO
Rosalind
1 year ago
A) $1.40
EL
Elden
2 years ago
Ugh, I hate these word problems. Can't they just give us a simple formula and some numbers? *sighs* Alright, let's do this.
FR
Francesco
2 years ago
I'm not sure about the answer, I need to calculate it again based on the information provided.
AR
Arthur
2 years ago
I agree with Lauran, the answer should be $1.40 because of the batch production and quality inspections.
LA
Lauran
2 years ago
I think the total overhead cost per unit of Product B is $1.40.
LA
Lawrence
2 years ago
Wait, do I need to consider the cost of the machines being reset? This could get tricky... *grabs calculator*
CA
Caprice
1 year ago
User 2
FE
Felix
1 year ago
User 1
MA
Maryln
1 year ago
User 2
TH
Theola
1 year ago
User 1
TR
Truman
2 years ago
Okay, let's see... 7,500 units, 250 per batch, and quality checks every third batch. Sounds like a job for a spreadsheet and some careful calculations!
AL
Alverta
2 years ago
I'm not sure about the answer, I need to recheck the calculations to confirm.
LE
Lenita
2 years ago
I agree with Sommer, the answer seems to be $1.40 based on the information provided.
BU
Buffy
2 years ago
Hmm, this looks like a classic activity-based costing problem. Gotta remember to factor in the batch setup and quality inspection costs!
NA
Nancey
1 year ago
Great job! Activity-based costing can be tricky, but you nailed it.
RE
Regenia
1 year ago
That's correct! The total overhead cost per unit of Product B is $1.40.
JO
Jovita
1 year ago
I think the total overhead cost per unit of Product B is $1.40.
RE
Reid
1 year ago
Don't forget to include the batch setup and quality inspection costs in the overhead calculation.
SO
Sommer
2 years ago
I think the total overhead cost per unit of Product B is $1.40.