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Question 1:
A) be driver accounts argon as follows:

Setups: $20,000 * 40% * 1.4 = $ 11,200

payoff Runs: $20,000 * 50% * 1.4 + $10,000 X 80% = $22,000
routine of Products: $20,000 * 10% * 1.4 + $10,000 * 20% = $ 4,800
Machine-hour capacity: $52,000 $11,200 $22,000 $4,800 = $14,000
Cost number one wood| Overhead Cost| Cost Driver Units| Rate |
Setups| 11,200| 560| 20|
Production Runs| 22,000| 110| 200|
Number of Products| 4,800| 4| 1,200|
Machine-hour| 14,000| 10,000| 1.4|
entirety Indirect Costs| 52,000| | |

Therefore, The cost driver rates for distributively of the four cost drivers atomic number 18, $20/hour( setups), $200/run(Production runs), $1,200/product ( Number of Products), $1.40/hour (Machine-hour capacity)
B)    Unit cost for the feed product are calculated below.
     Materials:    $0.50 = $25,000 (given)/50,000 units
     Direct Labor:    $0.20 = $10,000 (given)/50,000 units
     Fringe Benefits on DL:    $0.08 = $4,000 (given)/50,000 units
     Machine Setups:    $0.08 = ($20 rate X 200 hours)/50,000 units
     Production Runs:    $0.16 = ($200 rate X 40 runs)/50,000 units
     Managing Production:    $0.024 = $1,200 rate/50,000 units
     Machine Capacity:    $0.14 = ($1.



40 rate X 5,000 hours)/50,000 units

Unit costs for the Regular product are calculated as follows:
Materials: $ 0.50


DietRegularCherryGrape
Materials$0.50$0.50$0.52$0.55
Direct Labor0.200.200.200.20
Fringe Benefits on DL0.080.080.080.08
Machine Setups0.080.030.5331.20
Production Runs0.160.150.6672.00
Managing Products0.0240.030.1331.20
Machine Capacity0.14 0.140.14 0.14
Cost per Unit$1.184$1.13$2.273$5.37

C) DietRegularCherryGrapeTotal
gross revenue$75,000$60,000$13,950$1,650$150,600
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