Hitech products manufactures three types of remote-control devices : Economy, standard and deluxe. The company, which uses

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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??

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Related Book For  book-img-for-question

Introduction to Managerial Accounting

ISBN: 978-0073527079

5th edition

Authors: Peter Brewer, Ray Garrison, Eric Noreen

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