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Use the information provided below to answer the following questions Total Cost Guitar S300,000 $20,000 Monopoly Thor Direct Materials Direct Labor $450,000 S1,500,000 $30,000 $60,000
Use the information provided below to answer the following questions Total Cost Guitar S300,000 $20,000 Monopoly Thor Direct Materials Direct Labor $450,000 S1,500,000 $30,000 $60,000 Overhead Setu 75 setups$750,000 2,500 hours 1,500 hours 4,000 hours $150,000 $360,000 100 setups 50 setups Machinin Inspection 45 20 inspections inspectionsinspections 50 Assembl 1,500 hours 1,000 hours 3,500 hours $90,000 Number of units 12,000 15,000 3,000 roduced Assume the following selling prices per unit: Guitar $200/unit, Monopoly $150/unit, Thor $700/unit. Suppose the firm uses activity-based costing with the cost drivers identified for each of the four overhead cost pools. What is the product profitability per unit of Thor? Less than $6.5 C Exactly $6.5 More than $6.5 Can't Tell
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