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Please answer all 3. Thanks so much in advance:D value: 25. 040 points Njombe Corporation manufactures a variety of products. In the past, Njombe has
Please answer all 3. Thanks so much in advance:D
value: 25. 040 points 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 using three activity cost pools. 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 Activities Measure Machine setups ........... Number of setups Quality control ......... Number of inspections Other overhead ............ Machine hours Expected Estimated Activity Overhead cost 400 S150,000 1,500 S1 80,000 30,000 S480,000 Information (on a per unit basis) related to three popular products at Njombe are as follows: Model #19 Model #36 Model #58 Direct material cost $400 $540 S310 Direct labor cost $810 $600 $220 Number of setups ............... Number of inspections .......... Number of machine hours...... 10 Under the activity-based costing system, what would be the selling price of one unit of Model #36Step by Step Solution
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