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Stuart Cameras, Incorporated manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Stuart uses an activity-based costing
Stuart Cameras, Incorporated manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Stuart uses an activity-based costing system. The following are the relevant cost data for the previous month: Direct Cost per Unit Model ZM Model DS Direct materials $ 20 .40 $ 9.00 Direct labor 28 . 80 11.00 Estimated Category Cost Cost Driver Amount of Cost Driver Unit level $ 24, 990 Number of units ZM: 2, 450 units; DS: 9, 450 units Batch level 44, 640 Number of setups ZM: 24 setups; DS: 24 setups Product level 88 , 750 Number of TV commercials ZM: 13; DS: 12 Facility level 228,000 Number of machine hours ZM: 400 hours; DS: 800 hours Total $ 386, 380 Stuart'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 $121 and for DS is $89. If Stuart 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 Stuart can sell as many cameras as it can produce by pricing Model ZM at $116 and Model DS at $40. Stuart would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is theStuart'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 $121 and for DS is $89. If Stuart 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 Stuart can sell as many cameras as it can produce by pricing Model ZM at $116 and Model DS at $40. Stuart 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 C Compute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal places.) Direct Direct Allocated Type of Product + + Total Materials Labor Overhead Model ZM +c. A market expert believes that Stuart can sell as many cameras as it can produce by pricing Model ZM at $116 and Model DS Stuart would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is th target cost for each product? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal places.) Type of Product Direct Direct Allocated Total Materials Labor Overhead Model ZM Model DSc. A market expert believes that Stuart can sell as many cameras as it can produce by pricing Model ZM at $116 and Model DS at Stuart 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 C The current market price for products comparable to Model ZM is $121 and for DS is $89. If Stuart 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 C A market expert believes that Stuart can sell as many cameras as it can produce by pricing Model ZM at $116 and Model DS at $40. Stuart 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 per unit
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