Activity-Based Budget
Highlands Industries has the following budget information available
for February:
Units manufactured | 25,000 | |
Factory administration | $145,000 | |
Assembly | 0.25 | hour per unit X $20 |
Direct materials | 3 | pounds per unit X $6 |
Inspection | $40 | per batch of 1,000 units |
Manufacturing overhead | $8 | per unit |
Product development | $50,000 | |
Setup cost | $100 | per batch of 1,000 units |
Use activity-based costing to prepare a manufacturing cost budget
for February. Clearly distinguish between unit, batch, and
facility-level costs.
HighlandsIndustries Activity-Based Manufacturing Cost Budget For the Month of February |
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---|---|---|
Unit-level costs: | ||
Direct materials | Answer | |
Assembly | Answer | |
AnswerFactory administrationInspectionManufacturing overheadProduct development | Answer | Answer |
Batch-level costs: | ||
Setup | Answer | |
AnswerFactory administrationInspectionManufacturing overheadProduct development | Answer | Answer |
Product-level costs: | ||
AnswerFactory administrationInspectionManufacturing overheadProduct development | Answer | |
Facility-level costs: | ||
AnswerFactory administrationInspectionManufacturing overheadProduct development | Answer | |
Budgeted manufacturing costs | Answer |
Please answer all parts of the question.
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