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

Question: 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.

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:

Direct materials Direct labor Manufacturing overhead Full manufacturing cost per unit Economy

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.

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

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