Manzer Company uses JIT manufacturing. Several manufacturing cells are set up within one of its factories. One of the cells makes speakers for computers. The cost of production for the month of April is as follows:

During April, 10,000 sets of speakers were produced and sold.
Required:
1. Explain why process costing can be used for computing the cost of production for the speakers.
2. Calculate the cost per unit for a speaker.
3. Explain how activity-based costing can be used to determine the overhead assigned to the cell.

Transcribed Image Text:

Cell labor Direct materials Overhead Total $ 80,000 200,000 160,000 $440,000