HiTech Products manufactures three types of CD players: Cheap, Econo, and Deluxe. HiTech uses an activity-based product costing system. The company has identified five activities. Each activity, its cost and related activity driver is identified below:ActivityCostActivity DriverMaterial handling$ 225,000Number of partsMaterial insertion$2,475,000Number of partsAutomated machinery$ 840,000Machine hoursFinishing$ 170,000Labour hoursPackaging$ 170,000Orders shippedTotal manufacturing cost$ 3,880,000

The following information pertains to each product line of CD players:CheapEconoDeluxeUnits to be produced10,0005,0002,000Orders to be shipped1,000500200Number of parts per unit101525Machine hours per unit135Labour hours per unit222

Under an activity-based product costing system, what is the per unit cost of Deluxe?

Select one:

a.$141

b.$946.66

c.$440

d.$272

e.$164

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Which of the following would appear on the debit side of the overhead account?

Select one:

Actual overhead cost incurred in the period

Overhead applied (charged) to production

Overapplied overhead for the period

Actual overhead cost incurred in the period AND overapplied overhead for the period

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Conventional product costing systems used where product diversity has increased, cost structures have become more overhead-intensive and a higher proportion of overhead costs are fixed costs can result in:

Select one:

overstating the cost of high-volume, relatively simple product lines and understating the costs of low-volume, speciality product lines.

understating the cost of high-volume, relatively simple product lines and overstating the costs of low-volume, speciality product lines.

understating the cost of both high-volume and low-volume product lines.

overstating the cost of both high-volume and low-volume product lines.

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Classix Products reported $28 000 in net profit for the year using variable costing. The company had no units in beginning inventory, planned and actual production was 30 000 units, and sales were 25 000 units during the year. Variable manufacturing costs were $15 per unit and total budgeted fixed manufacturing overhead was $150 000. There was no underapplied or overapplied overhead reported during the year. Determine the net profit under absorption costing.

Select one:

A.$28 000

B.$30 000

C.$53 000

D.$58 000