SOLUTION: The Nimble Digits Division of Block C Enterprises produces two products through two workstations in its factory. 1000 units of each product are produced each year. Both products
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Question 398831: The Nimble Digits Division of Block C Enterprises produces two products through two workstations in its factory. 1000 units of each product are produced each year. Both products have a direct material cost of $10 per unit. Both products visit the Dashiell (Hammett) department and the (James) Joyce department in the factory. The Dashiell department is highly automated while the Joyce department is largely manual operations. A unit of product 1 requires 0.1 labor hours in Dashiell and 4 hours in Joyce. Product 2 require 1 labor hours in Dashiell and 1 hour in Joyce. Annual overhead costs are $500000 for Dashiell and $100000 for Joyce, based on a 2000 hour work year. Direct labor costs $18 per hour. Calculate the per item overhead for product 1 for the Dashiell workstation using the activity based costing method.
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