Question
Bryant Products uses activity-based costing. They manufacture three types of remote-control devices: Economy, Standard, and Deluxe. The company identified five activities (and related cost drivers).
Bryant Products uses activity-based costing. They manufacture three types of remote-control devices: Economy, Standard, and Deluxe. The company identified five activities (and related cost drivers). Identified below are the activities, budgeted cost, and related cost driver. Activity Cost Cost Driver Material handling $ 267,750 Number of parts Material insertion 2,945,250 Number of parts Automated machinery 873,250 Machine hours Finishing 202,300 Direct labor hours Packaging 186,150 Orders shipped Total $ 4,474,700 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 5 Labor hours per unit 2 2 2 Under Bryants activity-based costing system, what is the per-unit overhead cost of Economy?
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