Hitech products manufactures three types of remote-control devices : Economy, standard and deluxe. The company, which uses
Question:
Hitech products manufactures three types of remote-control devices : Economy, standard and deluxe. The company, which uses activity based costing has identifies five activities (and related cost drivers) activity
Material handling cost $225,000 and cost driver: number of parts
Material insertion $ 2,475,000 cost driver: number of parts
Automated machinery: 840,000 cost driver machine hours finishing 170,000 cost driver direct labor hours
Packaging 170,000 cost driver orders shipped
The following information pertains to the three products
Units to be produced: Economy: 10,000 Standard: 5000 Deluxe: 2,000
Orders to be shipped: Economy: 10000 Standard : 500 Deluxe: 200
Number of parts per unit: Economy: 10 Standard : 15 Deluze: 25
Machine Hours per unit: Economy: 1 Standard: 3 Deluxe: 5
Labor Hours per Unit: Economy: 2 Standard: 2 Deluxe: 2
Question is : Under ABC what is the per unit cost of economy??
Step by Step Answer:
Introduction to Managerial Accounting
ISBN: 978-0073527079
5th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen