Meiler, Inc

Essay

Meiler, Inc., manufactures and sells two products: Product T6 and Product U1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $15.90 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Required:
In all computations involving dollars in the following requirements, round off your answer to the nearest whole cent.
a. Compute the activity rates under the activity-based costing system.
b. Determine how much overhead would be assigned to each product under the activity-based costing system.
c. Determine the unit product cost of each product under the activity-based costing method.