Consider the following information for Basin Head Door Company for the production of two types of doors: Standard and Superior:
Material costs used and supplied for 2,000 Standard Doors, $400,000; 800 Superior Doors, $200,000. Labor supplied for production of both products, $125,000; each door is physically cut and assembled by an individual employee.
Facility-level saws and sanding equipment used on a per unit basis for both products, $20,000.
Special packaging and shipping provided on a per-unit basis to customers: $56,000 shipping, $14,000 for material, $28,000 for labor.
Custodial and security service for the manufacturing area, allocated based on number of doors manufactured: $10,000.
Electrical cost, allocated based on the number of doors manufactured, $20,000. Special designs and alterations for Superior Doors, $10,000.
Required: Compute the unit-level and full ABC costs per unit for the Standard and Superior Doors.
Correct Answer:
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