Product costs, activity-based costing systems. Executive Power (EP) manufactures and sells computers and computer peripherals to several nationwide retail chains. Johan Farnham is the manager of the printer division. Its two largest-selling printers are P-41 and P-63. The manufacturing cost of each printer is calculated using EP's activity-based costing system. EP has one direct manufacturing cost category (direct materials) and the following five indirect manufacturing cost pools:

REQUIRED What is the manufacturing cost of P-41? of P-63?LO1

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Indirect Manufacturing Cost Pool 1. Materials-handling 2. Assembly management 3. Machine insertion of parts 4. Manual insertion of parts 5. Quality testing Allocation Base Number of parts Hours of assembly time Number of machine- inserted parts Number of manually inserted parts Inspection hours Product characteristics of P-41 and P-63 are as follows: Allocation Rate $1.38 per part $60 per assembly hour $0.80 per machine-inserted part $3.20 per manually inserted part $40 per inspection hour P-41 P-63 Direct materials cost $525 $375 Number of parts 90 parts 48 parts Assembly hours 3.5 hours 1.8 hours Number of machine-inserted parts 48 parts 28 parts Number of manually inserted parts 36 parts 12 parts Inspection hours 1.6 hours 0.9 hours