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Akos Inc. produces phones. One of its plants produces two versions of phones: a basic model and a premium model. At the beginning of
Akos Inc. produces phones. One of its plants produces two versions of phones: a basic model and a premium model. At the beginning of this year, the following data were prepared for the plant: Basic Model Premium Model Expected Quantity 20,000 10,000 Selling Price Per Unit $90 $200 Total Prime Costs $300,000 $300,000 Machine Hours 2,500 2,500 Number of requisitions 500 1,500 Maintenance hours 4,000 Number of setups 28 6,000 32 Additionally, the following overhead activity costs are reported: Maintaining equipment Setting up equipment Purchasing materials Total a) b) $220,000 $120,000 $90,000 $430,000 What is the total cost of the basic & premium model using activity-based costing? Basic Premium What is the unit cost of the basic & deluxe model using Plantwide overhead rate based on machine hours? Basic Premium
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