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Someone please help!! I will give thumbs up!!!!! PLEASE Bework PDR 0/1 Question 2 of 5 View Policies Show Attempt History Current Attempt in Progress
Someone please help!! I will give thumbs up!!!!! PLEASE
Bework PDR 0/1 Question 2 of 5 View Policies Show Attempt History Current Attempt in Progress After attending a seminar on measuring customer profitability, Mason Ford decided to examine Olson Optics' customers to determine if the company truly knew how profitable its customers were Olson Optics already uses an activity based costing system to determine the product cost of its two products: RF30 and LF45. Each RF 30 sells for $ 17 and requires $ 7.80 in direct materials and $5.00 in direct labor. Each LF45 sells for $45 and requires $ 17.00 in direct materials and S 1340 in direct labor. The following table provides cost and activity information for manufacturing overhead fole the two products Number of Activities Manufacturing Activity Cost Pool Cost Driver Overhead Costs RF30 LF45 Total Packing Cartons $187.500 375.000 250,000 625,000 Setup hours 375,000 10,000 27,500 37,500 Assembly Spot welds 585,000 130,000 260,000 390,000 Finishing Machine hours 340,000 20.000 80,000 100,000 Total manufacturing overhead costs $1,487,500 Units produced 475,500 202.400 Setup Based on what Ford learned at the seminar, he has gathered the following information about customer support activities. Cost Driver Selling Costs Driver Volume Activity Cost Pool Onders $ 240,000 40,000 1475,500 202.400 Based on what Ford learned at the seminar, he has gathered the following information about customer support activities. Cost Driver Selling Costs Driver Volume Activity Cost Pool Order entry Customer support Orders $ 240,000 40,000 Support hours 165,000 5,000 Sales calls Sales calls 240,000 2.000 Express shipping Shipments 147.000 7.000 Total selling costs $ 792.000 Ford wants to apply his new profitability analysis techniques to Infrared Technologies, a company he believes is representative of Olson's average customer. Information about Infrared's account activity is as follows. 10,000 units 3,000 units RF30 purchases LF45 purchases Orders placed Customer support 100 360 hours Sales calls 24 Express shipments 95 (a) Your Answer Correct Answer Your answer is incorrect. Calculate the activity-based product cost for RF30 and LF45. (Round answers to 2 decimal places, es 15.25.) RF30 LF45 Total unit cost $ $ eTextbook and Media Solution Assistance Used Save forta Attempts: unlimited Submit Answer (b) Step by Step Solution
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