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Morrison Company manufactures two products: digital cameras and video cameras. The company uses an activity-based costing system. The annual production and sales volume of digital

Morrison Company manufactures two products: digital cameras and video cameras. The company uses an activity-based costing system. The annual production and sales volume of digital cameras is 10,000 units and of video cameras is 8,000 units. Direct costs for the digital cameras are $122; for the video cameras, direct costs are $153. For overhead costs, there are three activity cost pools with the following expected activities and estimated total costs:

Activity Cost Pool

Estimated Cost

Expected Activity Digital Cameras

Expected Activity Video Cameras

Total

Activity 1

$30,000

100

500

600

Activity 2

$45,000

600

300

900

Activity 3

$96,600

400

2,000

2,400

Refer to Morrison Company. Using ABC, the total cost per digital camera is approximately:

Please show calculations!

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