Question
CompInc. produces two products: a high-end laptop computer and an inexpensive laptop. The two products use two overhead activities, which have the following costs: Setting
CompInc. produces two products: a high-end laptop computer and an inexpensive laptop. The two products use two overhead activities, which have the following costs:
| Setting up equipment | $8,000 |
| Machining | 48,000 |
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.
|
| High-end | Inexpensive |
| Direct Labour | $24,000 | $8,000 |
| Direct Materials | 15,000 | 4,000 |
| Units | 2,000 | 2,000 |
| Machine Hours | 1,000 | 3,000 |
| Setup Hours | 150 | 50 |
What is the overhead cost per unit for high-end laptops when using a plantwide rate that is based on direct labour costs?
| $21.00 per laptop |
| $14.00 per laptop |
| $10.00 per laptop |
| $7.00 per laptop |
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Stats Data And Models
Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock
4th Edition
321986490, 978-0321989970, 032198997X, 978-0321986498
