Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Campbell Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens, Model DS has a fixed lens. Campbell uses an activity-based costing

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Campbell Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens, Model DS has a fixed lens. Campbell uses an activity-based costing system. The following are the relevant cost data for the previous month Direct Cost per unit Direct materials Direct labor Model zx $20.20 28.40 Modelos $7.ee 9.00 Category unit level Batch level Product level Facility level Total Estimated cost $ 25,960 47,320 9e, ee 180, eee $ 343,288 Cost Driver Number of units Number of setups Number of TV commercials Number of machine hours use of cost Oriver ZM: 2,400 units, DS: 9,400 units ZM: 26 setups: DS: 26 setups ZM: 15; DS: 18 ZM: 300 hours 5: 600 hours Campbell's facility has the capacity to operate 2.700 machine hours per month Required o. Compute the cost per unit for each product. b. The current market price for products comparable to Model ZM is $118 and for DS IS $74 i Campbell sold all of its products at the market prices, what was its profit or loss for the previous month? c. A market expert believes that Campbell can sell as many cameras as it can produce by pricing Model ZM at $113 and Model DS at $33. Campbell would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the target cost for each product? Required a. Compute the cost per unit for each product. b. The current market price for products comparable to Model ZM is $118 and for DS is $74. If Campbell sold all of its products at the market prices, what was its profit or loss for the previous month? c. A market expert belleves that Campbell can sell as many cameras as it can produce by pricing Model ZM at $113 and Model DS at $33. Campbell would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the target cost for each product? Complete this question by entering your answers in the tabs below. Required A Required B Required Total Compute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal placen.) Type of Product Ditect Direct Allocated Materials Labor Overhead Model ZM Model DS 0.00 5 0.00 Requeda Required B > Required a. Compute the cost per unit for each product b. The current market price for products comparable to Model ZM IS $118 and for DS is $74. If Campbell sold all of its products at the market prices, what was its profit or loss for the previous month? C. A market expert belleves that Campbell can sell as many cameras as it can produce by pricing Model ZM at $113 and Model DS a $33. Campbell would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What the target cost for each product? Complete this question by entering your answers in the tabs below. Required a Required B Required c The current market price for products comparable to Model ZM is $118 and for DS is $74. If Campbell sold all of its products at the market prices, what was its profit or loss for the previous month? (Round intermediate calculations to 2 decimal places. Loss amounts should be indicated by a minus sign.) Amont Model ZM Model DS Required a. Compute the cost per unit for each product b. The current market price for products comparable to Model ZM is $118 and for DS is $74. If Campbell sold all of its products at the market prices, what was its profit or loss for the previous month? c. A market expert believes that Campbell can sell as many cameras as it can produce by pricing Model ZM at $113 and Model DS at $33. Campbell would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the target cost for each product? Complete this question by entering your answers in the tabs below. Required A Required B Required c A market expert believes that Campbell can sell as many cameras as it can produce by pricing Model ZM at $113 and Model DS at $33. Campbell would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the target cost for each product? (Round your answers to 2 decimal places.) Model 20 Models Target cost / unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Information Systems For Accounting Students

Authors: Martin Quinn

1st Edition

0273773526, 9780273773528

More Books

Students also viewed these Accounting questions