PART ONE

National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders.

Model	Annual Sales in Units
High F	11,800
Great P	17,800

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	$	39.80		$	27.20
Direct labor	$	19.40		$	15.00

Budget factory overhead:
Engineering and Design	2,760	engineering hours	$	441,600
Quality Control	13,190	inspection hours		325,500
Machinery	34,070	machine hours		610,200
Miscellaneous Overhead	26,750	direct labor hours		159,480
Total			$	1,536,780

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
Engineering and design hours	1,140	1,620
Quality control inspection hours	5,820	7,370
Machine hours	20,460	13,610
Labor hours	12,180	14,570

Using activity-based costing, total overhead per unit of the High F model is:

• $43.35.

• $46.48.

• $60.12.

• $64.84.

• $160.00.

PART TWO

Barstow Manufacturing Company has two service departments product design and engineering support, and two production departments assembly and finishing. The distribution of each service department's efforts to the other departments is shown below:

FROM	TO
	Design			Support			Assembly			Finishing
Design	0	%		20	%		20	%		60	%
Support	20	%		0	%		30	%		50	%

The direct operating costs of the departments (including both variable and fixed costs) were as follows:

Design	$	110,000
Engineering Support	$	190,000
Assembly	$	560,000
Finishing	$	800,000

The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

• $1,885,468.

• $601,675.

• $657,083.

• $1,058,325.

• $1,002,917.