Question
Z Techno Incorporated manufactures two models of cameras that can be used as cell phones, MPX, and digital camcorders. Model High F Great P
Z Techno Incorporated manufactures two models of cameras that can be used as cell phones, MPX, and digital camcorders. Model High F Great P Annual Sales in Units 11,900 17,900 Techno uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows: High E Direct materials $ 39.90 Great P $ 27.30 Direct labor $ 19.50 $ 15.10 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,780 engineering hours $ 472,600 13, 210 inspection hours. 260,600 34,090 machine hours 678,200 26,770 direct labor hours 132,950 $ 1,544,350 Techno's controller had been researching activity-based costing and decided to switch to it. A special study determined Techno's two products have the following budgeted activities! Engineering and design hours Quality control inspection hours Machine hours Labor hours High F Great P 1,150 1,630 5,830 7,380 20,470 13,620 12,190 14,580 Using the firm's volume-based costing, applied factory overhead per unit for the High F model is: (Rounded to the nearest cent.)
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