Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Poo Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model Annual Sales in Units High F

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

Model Annual Sales in Units
High F 10,000
Great P 16,000

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 $38.00 $25.40
Direct labor $17.52 $13.14

Budget factory overhead
Engineering and Design 2,409 engineering hours $404,712
Quality Control 12,848 inspection hours $269,808
Machinery 33,726 machine hours $539,616
Miscellaneous Overhead 26,400 direct labor hours $134,904
Total $1,349,040

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 969 1,440
Quality control inspection hours 5,648 7,200
Machine hours 20,286 13,440
Labor hours 12,000 14,400

Using activity-based costing, applied engineering and design factory overhead for the High F model per unit is (rounded to the nearest cent):

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing Real Issues And Cases

Authors: Michael C. Knapp

8th Edition

0538466790, 9780538466790

More Books

Students also viewed these Accounting questions

Question

=+10. What is the brand's character or personality?

Answered: 1 week ago