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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 Sales
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 11,600 17,600 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 High F Great P $39.60 $27.00 $19.20 $14.80 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,720 engineering hours 13,150 inspection hours 34,030 machine hours 26,710 direct labor hours $ 462,400 364,000 575,960 159, 360 $1,561,720 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: Engineering and design hours Quality control inspection hours Machine hours Labor hours High F Great P 1,120 1,600 5,800 7,350 20,440 13,590 12,160 14,550 Using activity-based costing, total overhead per unit of the High F model is: (Rounded to the nearest cent.) Multiple Choice $66.33. $170.00 $47.83. $45.02. $62.06
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