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Amanufacturer manufactures two types of engineering diagnostic equipment used in construction. The two products are based on different technologies, x-ray and ultrasound, but are manufactured
Amanufacturer manufactures two types of engineering diagnostic equipment used in construction. The two products are based on different technologies, x-ray and ultrasound, but are manufactured in the same factory. The manufacturer has computed the manufacturing cost of the x-ray and ultrasound products by adding together direct materials, direct labor, and overhead cost applied based on the number of direct labor hours. The factory has three overhead departments that support the single production line that makes both products. Budgeted overhead spending for the departments is as follows: Engineering Department Material Handling 5,000 2,000 Setup 3,000 Total 10,000 Budgeted manufacturing activities and costs for the period are as follows: Activity Units produced and sold Direct materials used Direct labor hours used Direct labor cost Number of parts used Number of engineering changes Number of product setups X-Ray 10 $7,500 100 $4,000 400 Ultrasound 20 $9,000 300 $12,000 600 2 1 8 7 The budgeted cost to manufacture one ultrasound machine using the activity-based costing method is Answer: (round to nearest dollar)
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