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Question 21 (20 points) Rebel Alliance Enterprises manufactures two types of drones: the X-Wing and the TIE Fighter. The company is currently using a traditional
Question 21 (20 points) Rebel Alliance Enterprises manufactures two types of drones: the X-Wing and the TIE Fighter. The company is currently using a traditional costing system, but is considering changing to an activity-based cost system. With the help of the accounting department, the manager has been able to establish the following relationships between production costs and some of Activity Cost Driver Allocation Rate X-Wing TIE Fighter Material handling Number of parts Machining Machine hours Assembly Units began Inspection Number tested $14.75 per part $96.00 per hour $61.00 per unit $38.00 per unit 3,200 1200 7.900 250 5.000 1800 10,050 1.200 Direct costs X-Wing TIE Fighter Labour $127.000 $125,000 Materials $78,500 $90,050 Required 1. Using activity-based costing determine the total production cost of each of the tivo product lines for August and the cost per unit assu 2. Rebel Alliance sells the X-Wing drone for 5190 each and the TIE Fighter for $225. Calculate the per uni contribution margin for each drone
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