Rundle Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Rundle uses an activity-based costing system. The following are the relevant cost data for the previous month:

Rundles facility has the capacity to operate 3,600 machine hours per month.

Required

1. Compute the cost per unit for each product.

2. The current market price for products comparable to Model ZM is $120 and for DS is $86. If Rundle sold all of its products at the market prices, what was its profit or loss for the previous month?

3. A market expert believes that Rundle can sell as many cameras as it can produce by pricing Model ZM at $115 and Model DS at $40. Rundle would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the target cost for each product?

Rundle Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Rundle uses an activity-based costing system. The following are the relevant cost data for the previous month: Direct Cost per Model ZM Model DS Unit Direct materials Direct labor $20.10 $ 9.00 11.00 28.20 Estimated Cost Category Unit level Cost Driver Use of Cost Driver Number of units ZM: 2,400 units; DS: 9,500 units Number of setups ZM: 24 setups; DS: 24 setups Number of TV commercials ZM: 13; DS: 12 Number of machine hours ZM: 400 hours; DS: 800 hours $ 24,990 43,200 88,750 228,000 $384,940 Batch level Product level Facility level Total Rundle's facility has the capacity to operate 3,600 machine hours per month. Required a. Compute the cost per unit for each product. b. The current market price for products comparable to Model ZM is $120 and for DS IS $86. If Rundle sold all of its products at the market prices, what was its profit or loss for the previous month? c. A market expert believes that Rundle can sell as many cameras as it can produce by pricing Model ZM at $115 and Model DS at $40. Rundle would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the target cost for each product? Complete this question by entering your answers in the tabs below. Required A Required B Required Compute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal places.) Type of Product Model ZM Direct Materials Direct Labor Allocated Overhead Total S 0.00 Model DS 0.00 Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required The current market price for products comparable to Model ZM is $120 and for DS is $85. If Rundle sold all of its products at the market prices, what was its profit or loss for the previous month? (Round intermediate calculations to 2 decimal places. Loss amounts should be indicated by a minus sign.) Amount Model ZM Model DS Complete this question by entering your answers in the tabs below. Required A Required B Required A market expert believes that Rundle can sell as many cameras as it can produce by pricing Model ZM at $115 and Model DS at $40. Rundle would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the target cost for each product? (Round your answers to 2 decimal places.) Model ZM Model DS Target cost / unit