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The wireless phone manufacturing division of a consumer electronics company uses activity-based costing. For simplicity, assume that its accountants have identified only the following
The wireless phone manufacturing division of a consumer electronics company uses activity-based costing. For simplicity, assume that its accountants have identified only the following three activities and related cost drivers for indirect production costs: (Click the icon to view the activities and cost drivers.) Three types of cell phones are produced: Senior, Basic, and Deluxe. Direct costs and cost-driver activity for each product for a recent month are as follows: (Click the icon to view the costs and activity.) Indirect production costs for the month were as follows: (Click the icon to view the indirect production costs.) Read the requirements. Data table - Data table Materials handling Engineering 7,500 99,000 Senior Basic Deluxe Direct-materials cost 60,000 $ 80,000 $ 110,000 33,000 Direct-labor cost 10,602 $ 5,580 $ 11,718 Power 139,500 Kilowatt hours 70,000 210,000 270,000 Total indirect production cost Engineering change notices 13 20 77 Print Done Print Done -
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