Question

The Alexander Manufacturing Company in Rochester, Minnesota, assembles and tests electronic components used in smartphones. Consider the following data regarding component T24 (amounts are per unit):

Direct materials cost \( 81.00

Direct labor cost 21.00

Activity-based costs allocated ?

Total manufacturing product cost ?

The activities required to build the component follow:

Activity	Allocation Base	Cost Allocated to Each Unit
Start Station	Number of raw component chassis	3 X \)1.50 = \(4.50
Dip Insertion	Number of dip insertions	? X 0.50 = 14.50
Manual Insertion	Number of manual insertions	13 X 0.40 = ?
Wave solder	Number of components solders	3 X 1.50 = 4.50
Backload	Number of backload insertions	7 X ? = 2.80
Test	Number of testing hours	0.39 60.0 = ?
Defect analysis	Number of defect analysis hours	0.10 X ? = 4.00
Total activity-based costs		\) ?

Requirements

1. Complete the missing items for the two tables.

Short answer

Activity based cost allocated: $58.9

Total manufacturing product cost: $160.9

No. of dip insertion: 29

Total Manual insertion cost: $5.2

Backload unit cost: $0.4

Total test cost: $23.4

Defect analysis unit cost: $40

Step-by-step solution

Step-by-Step-SolutionStep 1: Computation of missing figures for activity table

$$\begin{gathered} \mathbf{Number}\mathbf{}\mathbf{of}\mathbf{}\mathbf{dip}\mathbf{}\mathbf{insertion}\mathbf{=}\frac{\mathbf{Total}\mathbf{}\mathbf{Dip}\mathbf{}\mathbf{insertion}\mathbf{}\mathbf{cost}}{\mathbf{Unit}\mathbf{}\mathbf{Cost}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\frac{\mathbf{\$}\mathbf{14}\mathbf{.}\mathbf{50}}{\mathbf{\$}\mathbf{0}\mathbf{.}\mathbf{50}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{29} \end{gathered}$$

$$\begin{gathered} \mathbf{Total}\mathbf{}\mathbf{cost}\mathbf{}\mathbf{of}\mathbf{}\mathbf{manual}\mathbf{}\mathbf{insertion}\mathbf{=}\mathbf{No}\mathbf{.}\mathbf{}\mathbf{of}\mathbf{}\mathbf{manual}\mathbf{}\mathbf{insertion}\mathbf{\times }\mathbf{Unit}\mathbf{}\mathbf{Cost} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{13}\mathbf{\times }\mathbf{\$}\mathbf{0}\mathbf{.}\mathbf{40} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{5}\mathbf{.}\mathbf{2} \end{gathered}$$

$$\begin{gathered} \mathbf{Unit}\mathbf{}\mathbf{cost}\mathbf{}\mathbf{for}\mathbf{}\mathbf{back}\mathbf{}\mathbf{load}\mathbf{=}\frac{\mathbf{Total}\mathbf{}\mathbf{}\mathbf{cost}}{\mathbf{No}\mathbf{.}\mathbf{}\mathbf{of}\mathbf{}\mathbf{backload}\mathbf{}\mathbf{insertion}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\frac{\mathbf{\$}\mathbf{2}\mathbf{.}\mathbf{8}}{\mathbf{7}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{0}\mathbf{.}\mathbf{4} \end{gathered}$$

role="math" localid="1653284399133" $$\begin{gathered} \mathbf{Total}\mathbf{}\mathbf{}\mathbf{test}\mathbf{}\mathbf{cost}\mathbf{=}\mathbf{No}\mathbf{.}\mathbf{}\mathbf{of}\mathbf{}\mathbf{testing}\mathbf{}\mathbf{hours}\mathbf{\times }\mathbf{Unit}\mathbf{}\mathbf{Cost} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{0}\mathbf{.}\mathbf{39}\mathbf{\times }\mathbf{\$}\mathbf{60} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{23}\mathbf{.}\mathbf{4} \end{gathered}$$

$$\begin{gathered} \mathbf{Unit}\mathbf{}\mathbf{cost}\mathbf{}\mathbf{for}\mathbf{}\mathbf{defect}\mathbf{}\mathbf{analysis}\mathbf{=}\frac{\mathbf{Total}\mathbf{}\mathbf{cost}}{\mathbf{No}\mathbf{.}\mathbf{}\mathbf{of}\mathbf{}\mathbf{}\mathbf{analysis}\mathbf{}\mathbf{hour}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\frac{\mathbf{\$}\mathbf{4}}{\mathbf{0}\mathbf{.}\mathbf{1}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{40} \end{gathered}$$

Computation of missing figure for component T24

$$\begin{gathered} \mathbf{Activity}\mathbf{}\mathbf{based}\mathbf{}\mathbf{cost}\mathbf{}\mathbf{allocated}\mathbf{=}\mathbf{Start}\mathbf{}\mathbf{station}\mathbf{}\mathbf{cost}\mathbf{+}\mathbf{Dip}\mathbf{}\mathbf{insertion}\mathbf{}\mathbf{cost}\mathbf{+}\mathbf{Manual}\mathbf{}\mathbf{insertion}\mathbf{}\mathbf{cost}\mathbf{+}\mathbf{Wave}\mathbf{}\mathbf{solder}\mathbf{}\mathbf{cost}\mathbf{+}\mathbf{Back}\mathbf{}\mathbf{load}\mathbf{}\mathbf{cost}\mathbf{+}\mathbf{Teast}\mathbf{}\mathbf{cost}\mathbf{+}\mathbf{Defect}\mathbf{}\mathbf{analysis}\mathbf{}\mathbf{cost} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{4}\mathbf{.}\mathbf{5}\mathbf{+}\mathbf{\$}\mathbf{14}\mathbf{.}\mathbf{5}\mathbf{+}\mathbf{\$}\mathbf{5}\mathbf{.}\mathbf{2}\mathbf{+}\mathbf{\$}\mathbf{4}\mathbf{.}\mathbf{5}\mathbf{+}\mathbf{\$}\mathbf{2}\mathbf{.}\mathbf{8}\mathbf{+}\mathbf{\$}\mathbf{23}\mathbf{.}\mathbf{4}\mathbf{+}\mathbf{\$}\mathbf{4} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{58}\mathbf{.}\mathbf{9} \end{gathered}$$

$$\begin{gathered} \mathbf{Total}\mathbf{}\mathbf{manufacturing}\mathbf{}\mathbf{product}\mathbf{}\mathbf{cost}\mathbf{=}\mathbf{Activity}\mathbf{}\mathbf{based}\mathbf{}\mathbf{cost}\mathbf{}\mathbf{allocated}\mathbf{+}\mathbf{Direct}\mathbf{}\mathbf{Material}\mathbf{}\mathbf{cost}\mathbf{+}\mathbf{Directl}\mathbf{}\mathbf{abor}\mathbf{}\mathbf{cost} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{58}\mathbf{.}\mathbf{9}\mathbf{+}\mathbf{\$}\mathbf{81}\mathbf{+}\mathbf{\$}\mathbf{21} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{160}\mathbf{.}\mathbf{9} \end{gathered}$$