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A detailed analysis of the production costs for model a and model b, including prime costs, direct labor hours, machine hours, production runs, inspection hours, maintenance hours, and overhead costs. The analysis is presented in both traditional and activity-based costing (abc) formats.
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Product Data
Traditional: Total Production Model A Model B Prime cost $100,000 $1,000, Overhead $210,000 $450, Total $310,000 $1,450, Unit Production Cost Model A Model B Prime cost $3.33 $3. Overhead $7.00 $1. Total $10.33 $4. Overhead Assignment: A B Total Traditional $210,000 $450,000 $660, ABC: ABC $166,001 $554,001 $720, Total Production Cost Model A Model B Prime $100,000 $1,000, Setup $72,000 $108, Inspection $56,000 $84, Machining $20,001 $200, Maintenance $18,000 $162, Total OH $166,001 $554, Unit Production Cost Model A Model B Prime $3.33 $3. Overhead $5.53 $1. Total $8.87 $5.