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National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Annual Sales in Units Model High F
National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Annual Sales in Units Model High F 10,000 Great P 16,000 National uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows: High F Great P Direct materials $38.00 $25.40 $17.52 Direct labor $13.14 Budget factory overhead: Engineering and Design Quality Control Machinery 2,409 engineering hours 404,712 12,848 inspection hours 33,726 machine hours 269,808 539,616 134,904 Miscellaneous Overhead 26,400 direct labor hours $1,349,040 Total National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities: 03H19211 National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities: High F Great F Engineering and design hours Quality control inspection hours Machine hours 1,440 969 5,648 7,200 20,286 13,440 Labor hours 12,000 14,400 Using activity-based costing, total overhead per unit of Great P model is: (Rounded to the nearest cent.) Multiple Choice $66.73. $61.32 $45.99 $168.00. $42.61
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