Hello Iconnic,

Can you assist me with another question. This is a continuation of Part 1 that I had previously sent.

Activity-Based Costing

An alternate method of assigning costs is activity-based costing. The major activity for the production of both Processor01 and Android01 is component assembly. There will be a total of 125,000 assemblies per year for the production of 500 units of Processor01 and 300 units of Android01 at a total cost of $25 million. Each unit of Android01 will require 180 assemblies. The remaining cost for the production of Android01 is for components, at $25,000 per unit.

Question 2: What would be the cost per unit of producing Android01 using activity-based costing?

Be sure to show your calculations in Excel and provide a narrative that summarizes the results of your analysis and make recommendations for the benefit of company.