Question
I know what the correct answer for this problem is, I just can not seem to understand how they arrived to that answer , I
I know what the correct answer for this problem is, I just can not seem to understand how they arrived to that answer , I would need the actual solving of the problem to show in order to understand
1) Hitech products manufactures three types of remote-control devices : Economy, standard and deluxe. The company, which uses activity based costing has identifies five activities ( ad related cost drivers)
activity
Material handling cost $225,000 and cost driver : number of parts
Materia insertion $ 2,475,000 cost driver : number of parts
Automated machinery : 840,000 cost driver machine hours
finishing 170,000 cost driver direct labor hours
Packaging 170,000 cost driver orders shipped
The following information pertains to the three products
Units to be produced : Economy : 10,000 Standard : 5000 Deluxe : 2,000
Orders to be shipped : Economy : 10000 Standard : 500 Deluxe : 200
Number of parts per unit : Economy : 10 Standard : 15 Deluze : 25
Machine Hours per unit : Economy : 1 Standard : 3 Deluxe : 5
Labor Hours per Unit : Economy : 2 Standard : 2 Deluxe: 2
Question is : Under ABC what is the per unit cost of economy??
HELP ! !
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