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Techno Incorporated manufactures two models of cameras that can be used as cell phones, MPX, and digital camcorders. Model High F Great P Annual Sales
Techno Incorporated manufactures two models of cameras that can be used as cell phones, MPX, and digital camcorders. Model High F Great P Annual Sales in Units 10,800 16,800 Techno uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows: Direct materials Direct labor High F $ 38.80 $ 18.40 Great P $ 26.20 $ 14.00 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,560 12,990 33,870 26,550 engineering hours inspection hours machine hours direct labor hours $ 409,600 271,320 540,800 132,400 $ 1,354,120 Techno's controller had been researching activity-based costing and decided to switch to it. A special study determined Techno's two products have the following budgeted activities: Engineering and design hours Quality control inspection hours Machine hours Labor hours High F 1,040 5,720 20, 360 12,080 Great P 1,520 7,270 13,510 14,470 Using activity-based costing, total overhead per unit of the High F model is: (Rounded to the nearest cent.)
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