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National Inc, manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model High F Great P Annual
National Inc, manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model High F Great P Annual Sales in Units 10, 200 16, 200 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: Direct materials Direct labor Total Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead High F $38.20 $17.80 Great P $25.60 $13.40 Engineering and design hours Quality control inspection hours Machine hours Labor hours 2,440 engineering hours 12,870 inspection hours 33,750 machine hours 26,430 direct labor hours 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 P 980 1,460 7,210 13,450 14,410 $ 482,600 295,780 607,320 158,520 $1,464,220 5,660 20,300 12,020 Using activity-based costing, applied machinery overhead for the Great P model per unit is: (Rounded to the nearest cent.)
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