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Why the answer is C? 31. $HiTech Products manufactures three types of CD players: Cheap, Econo and Deluxe. HiTech uses an activity-based product costing syst
Why the answer is C?
31. $HiTech Products manufactures three types of CD players: Cheap, Econo and Deluxe. HiTech uses an activity-based product costing syst The company has identified five activities. Each activity, its cost and related activity driver are identified below Activity Activity cost $225 000 $2475 000 $840 000 $170 000 170 000 S3 880 000 Activity Driver Number of parts Number of parts Machine hours Labour hours Orders shipped Material handling Material insertion Automated machinery Finishing Packaging Total manufacturing cost The following information pertains to each product line of CD players Cheap no Deluxe 50002000 200 25 Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labour hours per unit 10 000 1000 10 500 15 2 2 2 Under an activity-based product costing system, what is the cost per unit of Cheap? A. $141.00 B. $272.00 C. $164.00 D. $228.24 AACStep by Step Solution
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