Using the activity proportion method, how much of the quality control cost would be assigned to the economy model?

a. 20% of $500,000 = $100,000.

b. 40% of $500,000 = $200,000.

c. 60% of $500,000 = $300,000.

d. 80% of $500,000 = $400,000.

Hi-Def Video Company makes two types of digital DVD players, economy and deluxe, with the following per unit cost information:

The company currently applies \($1\) million in manufacturing overhead to the two products on the basis of direct labor hours. Both products require two hours of direct labor.

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Direct materials Direct labor Manufacturing overhead Full manufacturing cost per unit Economy (8,000 units) (2,000 units) Deluxe $50 $100 25 25 ? ? ? ?