S Ltd. manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has Identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Material handling Material insertion Automated machinery Finishing Packaging Total Cost $ 305,000 3,050,000 Cost Driver Number of parts Number of parts Machine hours 218,000 Direct labour hours 218,000 Orders shipped 1,185,600 $4,976,600 The following information pertains to the three product lines for next year: Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labour hours per unit Economy 11,600 1,160 10 1 2 Standard 6,600 660 15 32 3 2 Deluxe 3,600 360 25 5 2 Under S's activity-based costing system, what is the per-unit overhead cost of Deluxe?
S Ltd. manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has Identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Material handling Material insertion Automated machinery Finishing Packaging Total Cost $ 305,000 3,050,000 Cost Driver Number of parts Number of parts Machine hours 218,000 Direct labour hours 218,000 Orders shipped 1,185,600 $4,976,600 The following information pertains to the three product lines for next year: Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labour hours per unit Economy 11,600 1,160 10 1 2 Standard 6,600 660 15 32 3 2 Deluxe 3,600 360 25 5 2 Under S's activity-based costing system, what is the per-unit overhead cost of Deluxe?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 8CE: Electan Company produces two types of printers. The company uses ABC, and all activity drivers are...
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