Acc346 Managerial Accounting: ProPats is a company that manufactures (ABC)
Acc346 Managerial Accounting ProPats is a company that manufactures three souvenir produces and has the following direct costs for producing three 1,000-unit batches, one for each product. ProPats Hats Shirts Banners Direct Materials $5,000 $5,000 $5,000 Direct Labor $1,000 $1,000 $1,000 This manufacturing company has decided to implement ABC and has identified the following activity cost pools, total estimated annual cost, total estimated annual activity levels, and activity rates for each cost pool. Activity Cost Pool Est. Annual cost Est. Activity cost Activity Cost Supervision $600 3000 direct labor dollars $0.20 per dir labor Inspection $400 10 inspections $40 per inspection Depreciation $2,000 2000 machine hours $1 per machine hour Activity date for the three produces manufactured by the company are as follows: Hats Shirts Banners Direct Labor $1,000 $1,000 $1,000 No. of Inspections 4 4 2 Machine hours 1000 500 500 Calculate the unit cost of a banner.
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