Business
Business, 27.07.2021 16:40, jsnsnsns

TC Company makes four types of patio sets: wood, plastic, wicker, and aluminum. Data regarding the four products follows: DLHs/unit Annual Production Wood 2.0 1,000 units Plastic 1.0 2,000 units Wicker 5.0 5,000 units Aluminum 3.0 10,000 units Additional information about the company follows: • Wood sets require $40 in direct materials per unit, plastic sets require $20, wicker sets require $60 and aluminum sets require $50. • The direct labor wage rate for all production except for the aluminum sets is $15 per hour. Aluminum sets are more difficult to produce, so the wage rate for direct labor is $20 per hour. • Wood and wicker sets go through a special painting process. • Wood, plastic, and wicker sets all go through the sanding process. The ABC system used for allocating Manufacturing Overhead Costs has the following activity pools: Level of Activity Activity Cost Pool Activity Measure Estimated Cost Wood Plastic Wicker Aluminum Mach setups # of setups $136,000 100 100 500 1,000 Painting # pints used $30,000 250 1,250 Sanding # machine hrs $17,500 250 500 1,000 Gen. factory # DLHs $354,000 2,000 2,000 25,000 30,000 What is the total cost per unit under the ABC system for wicker patio sets? Select one: a. $147.50 b. $180.00 c. $135.00 d. $45.00

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