E8.27 LO 8.5 Costs and costing systems Assigning activity costs to products: manufacturer Vision Ltd manufactures Blu-ray players and uses an activity-based product costing system that assigns labour and overhead costs. Below is an incomplete bill of activities for the high-volume model 1763-x.

Activity Process payables Program production Process sales order Issue materials Set up solder machine Solder circuit boards Insert motor Assemble player Design player Required Vision Ltd bill of activities: 1763-X Cost per unit of activity driver

$45 per purchase order

$168.75 per production schedule

$56.25 per sales order

$90 per issue

$118.50 per setup

$11.25 per solder joint

$22.50 per player

$13.50 per player Annual quantity of activity driver used by the product 400 purchase orders 100 schedules 300 sales orders 100 issues 100 setups 40000 solder joints 5 000 players 5000 players Directly assigned cost of $9000 for model 1763-X 1. Complete the bill of activities and estimate the total activity cost of the 1763-X player, calculated on an annual and per unit basis, assuming the annual production is 5000 units.

2. If the direct material cost of a BluStandard player is $33.75 per unit, what is the total unit cost of the product?

3. Explain the treatment of the costs of the activity 'design player'.