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Jinko Pty Ltd produces circuit boards used in alarm systems. They are in the process of determining the costs and selling prices of three of

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Jinko Pty Ltd produces circuit boards used in alarm systems. They are in the process of determining the costs and selling prices of three of their main circuit boards: Advanced, Boosted and Customised, for the month of September. It has been established that Jinko will sell 3,000 units of Advanced, 1,000 units of Boosted and 500 units of Customised. The per-unit requirements for the three circuit boards are as listed: Advanced Boosted Customised Direct materials (grams) 50 75 100 Direct labour (hours) N - 0.5 Machine time (hours) - N 4 Overheads are currently applied from three cost pools: Labour related, machine related and variable overhead. The costs of these costs pools and their relevant cost drivers are as follows: Cost pools Total costs Cost driver Labour related $435,000 Direct labour hours Machine related $560,000 Machine hours Variable overhead $180,000 Number of units The average cost of direct materials is $600 per kilogram and the wage rate is $80 per hour. A 20% mark-up from product cost is used to determine the selling price of all products. Jinko is considering the use of Activity Based Costing and has gathered the following information: Planned activity Budgeted Overhead Costs Cost Driver for cost driver Labour related overhead Production scheduling $94,500 Number of orders 370 Inspection $174,000 Number of inspections 8,000 Packaging and shipping $166,500 Number of units 4,500 $435,000Planned activity Budgeted Overhead Costs Cost Driver for cost driver Machine related overhead Machine setup $176,400 Number of setups 17,000 Machine insertion $300,350 Number of insertions 1,320,000 Machine soldering $83,250 Number of parts 207,500 $560,000 Variable overhead General supplies $40,000 Machine hours 7,000 Procurement $75,000 Number of parts 207,500 Hazardous waste disposal $65,000 Grams of waste 60,000 $180,000 Required per Unit Advanced Boosted Customised Parts 25 70 125 Inspections 1 2 6 Machine setups 2 5 12 Machine insertions 120 480 960 Hazardous waste 10 grams 15 grams 30 grams Orders 0.1 0.02 0.1 Machine hours 2 4 REQUIRED: A. Determine the per-unit cost of each product using Jinko's original method of costing and establish the selling price for each product from the product costs (round to the nearest dollar). B. Determine the per-unit cost of each product using Activity Based Costing and determine the selling price for each product under Activity Based Costing (round to the nearest dollar)

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