Activity based cost analysis.
Carroll Company manufactures two products, Product DRT and Product CRT.
The company estimated it would incur $130,890 in manufacturing overhead costs during the current period. Overhead currently is assigned to the products on the basis of direct labour hours. Data concerning the current period\'s operations appear below:
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Product DRT
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Product CRT
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Estimated volume
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400 units
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1,200 units
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Direct labour hours per unit
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0.70 hour
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1.20 hours
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Direct materials cost per unit
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$10.70
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$16.70
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Direct labour cost per unit
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$11.20
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$19.20
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Were your results the typical pattern for an activity-based costing analysis? Explain.