Q1) Carroll Company manufactures two products, Product DRT and Product CRT. Company evaluated it would incur $130,890 in manufacturing overhead costs in present period. Overhead presently is allocated to products on basis of direct labour hours. Data concerning current period's operations appear below:
| |
Product DRT |
Product CRT |
| Estimated volume |
400 units |
1,200 units |
| Direct labour hours per unit |
0.70 hour |
1.20 hours |
| Direct materials cost per unit |
$10.70 |
$16.70 |
| Direct labour cost per unit |
$11.20 |
$19.20 |
Were your results typical pattern for the activity-based costing analysis? Describe in detail.