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National ing manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model Annual Sales in Units High F
National ing manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model Annual Sales in Units 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 Direct labor $ 17.52 $ 13.14 Budget factory overhead: Engineering and Design 2,409 engineering hours $404,712 Quality Control 12,848 inspection hours 269,808 Machinery 33,726 machine hours 539,616 Miscellaneous Overhead 26,400 direct labor hours 134,904 Total $ 1,349,040 Nationals controller had been researching activity based costing and decided to switch to it. A special study determined Nationals two products have the following budgeted activities: High Great P Engineering and design hours 909 1.440 Quality control inspection hours 5,648 7,200 Machine Hours 20,286 13,440 Labor hours 12,000 14400 Using activity based costing, applied engineering and design factory overhead for the High F model per unit : (Rounded to the nearest cent.) $16.28 $32.46 111.86. 56.13
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