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Alphabet Technology produces two products: a high-end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products
Alphabet Technology produces two products: a high-end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with the following costs: Line Item Description Amount Setting up equipment $3,000 Machining $15,000 The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production. Line Item Description Excellent Laptops Outstanding Computers Direct labor $25,000 $10,000 Direct materials $20,000 $5,000 Expected production in units 3,000 3,000 Machine hours 850 2,000 Setup hours 80 75 Calculate the overhead cost per unit for each Outstanding Computers' computer using overhead rates based o
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