Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 3 - Activity Based Costing (15 points) Part 1: Calculate the cost per unit of activity for each activity cost pool for Maxell company
| Problem 3 - Activity Based Costing (15 points) | ||||
| Part 1: Calculate the cost per unit of activity for each activity cost pool for Maxell company | ||||
| Cost pools: | Costs: | Cost Driver: | Quantity: | Cost per activity: |
| Setup costs | $ 30,000 | Setups | 150 | |
| Material handling | $ 6,000 | Material moves | 300 | |
| Machine operation | $ 150,000 | Machine hours | 10000 | |
| Packing | $ 40,000 | Packing Orders | 700 | |
| Maxell's product, cell phone model X1010, used the following activities to produce 250 units. | ||||
| Setups | 10 | |||
| Material Moves | 50 | |||
| Machine Hours | 950 | |||
| Packing Orders | 100 | |||
| Part 2: Calculate the manufacturing overhead cost per metal protector manufacturing during the period | ||||
| Part 3: Based on the above cost calculations for this product, how much do you think the company should charge the customer as a selling price for the cell phone model X1010? Describe your reasoning. | ||||
| Selling price | ||||
| Reason for this price | ||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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