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Njombe Corporation manufactures a variety of products. In the past, Njombe has been using a traditional costing system in which the predetermined overhead rate was

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Njombe Corporation manufactures a variety of products. In the past, Njombe has been using a traditional costing system in which the predetermined overhead rate was 150% of direct labor cost. Selling prices had been set by multiplying total product cost by 200%. Sensing that this system was distorting costs and selling prices, Njombe has decided to switch to an activity-based costing system for manufacturing overhead costs that uses the three activity cost pools listed below. Selling prices are still to be set at 200% of unit product cost under the new system. Information on these cost pools for next year are as follows: Activity Cost Pool Activity Measure Estimated Activity 400 Machine Setups Quality Control Other Overhead Number of setups Number of inspections Machine hours Estimated Overhead Cost $ 150,000 $ 180,000 $ 480,000 1,500 30,000 Information on a per unit basis) related to the popular products at Njombe are as follows: Model 19 Model #36 Model #58 S 310 S 400 $ 540 810 S 600 $ 220 Direct material cost Direct labor cost Number of setups Number of inspections Number of machine hours Question Completion Status: Information on a per unit basis) related to three popular products at Njombe are as follows: Model #58 Model #19 $ 400 S 810 Model #36 $ 540 $ 600 $ 310 $ 220 Direct material cost Direct labor cost Number of setups Number of inspections Number of machine hours 4 TERET Under the activity-based conting system, what would be the selling price of one unit of Model #367 52.712 $4,000 52,536 $5,506 Click Save and Submit to save and unit. Click Save All A r to sau allan

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