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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 10,200 16,200 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 $ 38.20 $ 17.80 Great P $ 25.60 $ 13.40 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,440 12,870 33,750 26,430 engineering hours inspection hours machine hours direct labor hours $ 402,600 295,780 607,320 158,520 $ 1,464,220 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: High F 980 5,660 Engineering and design hours Quality control inspection hours Machine hours Labor hours Great P 1,460 7,210 13,450 14,410 20,300 12,020 Using activity-based costing, applied miscellaneous overhead for the Great P model per unit is: (Rounded to the nearest cent.)
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