Question
XAE-1 company is reviewing the behavior of its various activities. XAD is considering various costs. The company manufactures two models of computers. The laptop computer
XAE-1 company is reviewing the behavior of its various activities. XAD is considering various costs. The company manufactures two models of computers. The laptop computer (model MX10) is a top of the line, deluxe model. The tower computer (model DX 20) is the regular model. The following activity data is provided:
Activity Usage Measures | Model MX10 | Model DX20 | Total |
Units produced annually | 15,000 | 40,000 | 55,000 |
Prime costs | $40,000 | $100,000 | $140,000 |
Machine hours | 40,000 | 60,000 | 100,000 |
Production runs | 14 | 6 | 20 |
Direct labor hours | 20,000 | 30,000 | 50,000 |
The company primarily has three major activities as follows in the production process:
Activity | Activity Cost |
Setups | $50,000 |
Inspections | $30,000 |
Power | $15,000 |
Calculate the unit cost of model MX 10.
a.
$7.10
b.
Some other cost not listed here
c.
$5.20
d.
$3.53
XAE-1 company is reviewing the behavior of its various activities. XAD is considering various costs. The company manufactures two models of computers. The laptop computer (model MX10) is a top of the line, deluxe model. The tower computer (model DX 20) is the regular model. The following activity data is provided:
Activity Usage Measures | Model MX10 | Model DX20 | Total |
Units produced annually | 15,000 | 40,000 | 55,000 |
Prime costs | $40,000 | $100,000 | $140,000 |
Machine hours | 40,000 | 60,000 | 100,000 |
Production runs | 14 | 6 | 20 |
Direct labor hours | 20,000 | 30,000 | 50,000 |
The company primarily has three major activities as follows in the production process:
Activity | Activity Cost |
Setups | $50,000 |
Inspections | $30,000 |
Power | $15,000 |
Calculate the unit cost of model MX 10.
a.
$7.10
b.
Some other cost not listed here
c.
$5.20
d.
$3.53
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