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I need help filling the circled section and does the rest look right? Techtronica manufactures two calculators; a standard and a deluxe model. The company
I need help filling the circled section and does the rest look right?
Techtronica manufactures two calculators; a standard and a deluxe model. The company uses activity-based costing and has identified four activities and related cost drivers. Each activity and its budgeted cost along with the related cost driver and quantities are identified below Activity Material handling Automated assembly Inspection Cost Driver Number of parts Machine hours Direct labor hours Orders shipped Quantity 200,000 parts 25,000 machine hours 34,000 direct labor hours Cost 300,000 1,875,000 680,000 Finishing & Packaging Total costs 1,700 orders 255.000 3,110,000 Production data for the calculators is given below Standard Deluxe 2,000 25 5 15,000 10 Units to be produced Number of parts per unit Machine hours per unit Labor hours per unit Orders to be shipped 2 1,500 200 Determine the full cost of the standard model and the deluxe model calculator, Identify the relevant activities Choose appropriate cost drivers for each activity Calculate the overhead rates for each activity Apply overhead to each product Determine the full cost of the product. Labor costs at $15 per hour and materials are $10 for the standard model and $15 for the deluxe model Why does the deluxe model carry more overhead than the standard modelStep by Step Solution
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