Ultratech, Inc., manufactures several different types of printed circuit boards; however, two of the boards account for the majority of the companys sales. The first of these boards, a television circuit board, has been a standard in the industry for several years. The market for this type of board is competitive and price-sensitive. Ultratech plans to sell 67,000 of the TV boards in 20x4 at a price of $370 per unit. The second high-volume product, a personal computer circuit board, is a recent addition to Ultratechs product line. Because the PC board incorporates the latest technology, it can be sold at a premium price. The 20x4 plans include the sale of 42,000 PC boards at $700 per unit.

0 plans include the sale of 42,000 PC boards at $700 per unit 5 get a premium price for the PC board. Selling it should help overall profitability The cost-accounting system shows that the following costs apply to the PC and TV boards Andrew Fulton, Ultratech's controller, believes that before the management group proce discussion about allocating sales and promotional dollars to individual products, it might be worthwhile to look at these products on the basis of the activities involved in their production. Fulton has prepared the following schedule to help the management group understand this concept direct labor, machine time, and overhead costs in the old standard cost figures $ 900,000 Number of setups 0 $ 2,500,000 8,200,000 Number of parts Number of parts 0 2