The following information applies to the questions displayed

The following information applies to the questions displayed below and direct lsbor costs are accumulated separately, along with information concerning four manufacturing overheed cost drivers (activities) Assume that the direct labor rate is $29 per hour and sels diegnostic equipment used in the medical profession. Its job costing system was designed using an activity-based costing epproach. Direct materials and that there were no beginning inventories. The following information was available for 2016, based on an expected production level of 542,857 units for the year Budgeted Costs for 2016 Cost Driver Used as Allocation Cost Allocation Rate $275 per part 15.00 per hour 5.75 per hour 3.50 per unit Actvity Cost Base Number of perts used Number of machine hours Direct labor hours worked s 5,000,000 Materials handling Miling and grinding Assembly and Inspection Testing 8,000,000 6,000,000 1900000 Number of units tested The following production, costs, and activities occurred during the month of August Direct Materials Number of Parts Machine Hours Costs $3,400000 285.000 95,000 175.000 Used Direct Labor Hours 57,000 Required information 0.93 points Required: a. Calkulate the total manufacthuring costs and the cost per unt produced and tested duning tho month of August for MedTech, Inc.(Round \"Cost per unit\" to 2 decimal places.) Total manufacturing cos Cost per unit produced and tested 21

Solution

Total manufacturing cost = $6,814,500

Cost per unit produced and tested = 6,814,500/57,000

= $119.55

Activity cost driver	Cost driver used		Allocation rate	Total cost
Direct materials used				3,400,000
Material handling	No. of parts used	285,000	2.75 per part	783,750
Miling and Griding	No. of machine hours	95,000	15 per hour	1,425,000
Assembly and Inspection	Direct labor hours	175,000	5.75 per hour	1,006,250
Testing	No. of units tested	57,000	3.50 per unit	199,500
Total manufacturing cost				6,814,500