A) Compute total budgeted indirect costs for November

B) Compute the total unit indirect cost of each model

C) Assume the sale price for the standard and deluxe models is 125$ and 185$ respectively, and that Clear Tone Telephone can produce either 1,000 standard units or 1,000 deluxe phones. Which model should Clear Tone Telephone manufacture and why? Assume all other costs are the same for both models.

Clear Tone Telephone Company manufactures cellular phones using an activity-based costing system. Information for the month of November follows: Activity Materials handling Machine setup Insertion of parts Finishing Allocation Base Cost Allocation Rate Number of parts Number of setups Number of parts Finishing direct labor hours $.60 800.00 1.10 15.00 Clear Tone Telephone produces two models of the cellular phone: a standard model and a deluxe model. Budgeted data for November are as follows: Standard 35 2 Deluxe Parts per unit Setups per 500 units Finishing direct labor hours per unit Direct materials cost per unit Management expects to produce 1,000 units of each model during November 50 $26 $43