Please write down how to get the solution. I don\'t want only answers Jackson En

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Please write down how to get the solution. I don't want only answers

Jackson Enterprises manufactures two products - a basic gizmo and an advanced model gizmo. The company is using an activity-based costing system. They have identified three activities for allocation of indirect costs.

Activity Cost Driver Cost-Allocation rate
Materials receiving Number of parts $2.00 per part
Production setup Number of setups $500.00 per setup
Quality inspection Inspection time $90 per hour

A production run for the basic model is 250 units, for the advanced model, 100 units.

Each unit of product consumes the following activities:
Number of parts Number of setups Inspection Time
Basic Gizmo 10 50 10 minutes
Advanced Gizmo 15 25 20 minutes

Direct costs for the two products are as follows:
Direct Materials Direct Labor
Basic Gizmo $50.00 $75.00
Advanced Gizmo $95.00 $125.00

Question 1. The amount of overhead allocated to one unit of the basic model would be
Question 2. The total cost of an advanced model would be

Explanation / Answer

The amount of overhead allocated to one unit=(2x10)+($500/250)+($90/60x10)=$37 The total cost of an advanced model=$75+$125+($2x15)+($500/100)+($90/60x20)=$265

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