Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Orlando Avionics makes three types of radios for small aircraft-Model A, Model B, and Model C. The manufacturing operations are mechanized, and there is no
Orlando Avionics makes three types of radios for small aircraft-Model A, Model B, and Model C. The manufacturing operations are mechanized, and there is no diredt labor. Manufacturing overhead costs are significant, and Orlando has adopted an activity-based costing system. Direct materials costs per unit for each model are as ollows: Model A $28 Model B $31 Model C $36 Orilando has three activities-assembly, materials management, and testing. Tide cost driver for assembly is machine hours. The cost driver for materials management ing is the number of units of product. Total costs and production volumes for the year were estimated as follows: Allocation Total cost Base Cost Driver Assembly $785,000 125,000 Machine hours OA, $49 O B. $146 . $122 OD, $150 Model B $31 Model C $36 has three activities-assembly, materials management, and testing. The cost driver for assembly is machine hours. The cost driver for materials management is the number of parts, and the c cost driver for testing is the number of units of product. Total costs and production volumes for the year were estimated as folows: lloionCost Cost Driver Total cost Base 25,000 Assembly Materials management Testing $785,000 Machine hours $126,000 $20,000 87,500 5,000 Parts Units 47 (Round any The Model A radio requires 12 parts to construct and 16 machine hours of processing. What is the calculations to the nearest cent, and your final answer to the nearest dollar.) faungCo manuf e one OA. $49 B. $146 O C. $150 OD, $122
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started