XYZ Electronics is analyzing its production costs for a new smartphone model:

• Requirements:
  • Calculate the Standard Cost per unit for the new smartphone:
    • Direct Materials: $150
    • Direct Labor: $80
    • Manufacturing Overhead: $50
• Implement Activity-Based Costing to allocate design and testing costs.
• Compare the costs calculated under Standard Cost Accounting and ABC.
• Discuss how each costing method influences pricing decisions and profitability for XYZ Electronics.

Standard Cost Calculation:

Category	Amount per Unit ($)
Direct Materials	$150
Direct Labor	$80
Manufacturing Overhead	$50
Total Standard Cost per Unit	$280