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Please explain in details for the calculation. HiTech Products manufactures three types of CD players: Cheap, Econo and Deluxe. HiTech uses an activity-based product costing
Please explain in details for the calculation.
HiTech Products manufactures three types of CD players: Cheap, Econo and Deluxe. HiTech uses an activity-based product costing system. The company has identified five activities. Each activity, its cost and related activity driver are identified below Activity Material handling Material insertion Automated machinery Finishing Packaging Total manufacturing cost Activity Diiver Number of parts Number of parts Machine hours Labour hours Orders shipped Cost 225 000 $2 475 000 $840 000 $170 000 $170 000 $3 880 000 The following information pertains to each product line of CD players eap cono Deluxe 2000 Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labour hours per unift 10 000 5000 500 15 200 25 1000 10 Under an activity-based product costing system, what is the cost per unit of Cheap? A. $141.00 B. $272.00 C. $164.00 D. $228.24Step by Step Solution
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