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.
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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