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marks) TikTok Electronics manufactures an aluminium fibre tripod model TRI-X which sells for $1,600. The production cost computed per unit under traditional costing for each
marks) TikTok Electronics manufactures an aluminium fibre tripod model "TRI-X" which sells for $1,600. The production cost computed per unit under traditional costing for each model in 2019 was as follows: Traditional Costing Direct Materials Direct Labour ($20/hour) Manufacturing overhead ($38 per DLH) Total per unit cost TRIX $700 $120 $228 $1,048 In 2019, TikTok Electronics manufactured 26,000 units of TRI-X. Under traditional costing, the gross profit on TRI-X was $552 ($1,600-$1,048). Management is considering phasing out TRI- X as it has continuously failed to reach the gross profit target of $600. Before finalizing its decision, management asks TikTok Electronics management accountant to prepare an 2 marks) TikTok Electronics manufactures an aluminium fibre tripod model "TRI-X" which sells for $1,600. The production cost computed per unit under traditional costing for each model in 2019 was as follows: Traditional Costing Direct Materials Direct Labour ($20/hour) Manufacturing overhead ($38 per DLH) Total per unit cost TRIX $700 $120 $228 $1,048 In 2019, TikTok Electronics manufactured 26,000 units of TRI-X. Under traditional costing, the gross profit on TRI-X was $552 ($1,600-$1,048). Management is considering phasing out TRI- X as it has continuously failed to reach the gross profit target of $600. Before finalizing its decision, management asks TikTok Electronics management accountant to prepare an 2
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