HiTech Products manufactures three types of CD players: Cheap, Econo and Deluxe. HiTech uses an activity-based product costing system. The company has identified five activities. Each activity, its cost and related activity driver are identified below: Activity Material handling Material insertion Automated machinery Finishing Packaging Total manufacturing cost Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labour hours per unit Cost $225 000 $2 475 000 $840 000 $170 000 $170 000 $3 880 000 A. $141.00 B. $272.00 C. $164.00 D. $228.24 The following information pertains to each product line of CD players: Activity Driver Number of parts Number of parts Machine hours Cheap 10 000 1000 10 1 2 Labour hours Orders shipped Econo 5000 500 15 3 2 Deluxe 2000 200 25 5 2 Under an activity-based product costing system, what is the cost per unit of Cheap?
HiTech Products manufactures three types of CD players: Cheap, Econo and Deluxe. HiTech uses an activity-based product costing system. The company has identified five activities. Each activity, its cost and related activity driver are identified below: Activity Material handling Material insertion Automated machinery Finishing Packaging Total manufacturing cost Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labour hours per unit Cost $225 000 $2 475 000 $840 000 $170 000 $170 000 $3 880 000 A. $141.00 B. $272.00 C. $164.00 D. $228.24 The following information pertains to each product line of CD players: Activity Driver Number of parts Number of parts Machine hours Cheap 10 000 1000 10 1 2 Labour hours Orders shipped Econo 5000 500 15 3 2 Deluxe 2000 200 25 5 2 Under an activity-based product costing system, what is the cost per unit of Cheap?
Chapter1: Financial Statements And Business Decisions
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![HiTech Products manufactures three types of CD players: Cheap, Econo and Deluxe. HiTech uses an activity-based product costing
system. The company has identified five activities. Each activity, its cost and related activity driver are identified below:
Activity
Material handling
Material insertion
Automated machinery
Finishing
Packaging
Total manufacturing cost
Cost
$225 000
$2 475 000
A. $141.00
B. $272.00
C. $164.00
D. $228.24
$840 000
$170 000
$170 000
$3 880 000
The following information pertains to each product line of CD players:
Cheap
10 000
Activity Driver
Number of parts
Number of parts
Machine hours
Labour hours
Orders shipped
1000
10
1
2
Econo
5000
500
15
3
2
Units to be produced
Orders to be shipped
Number of parts per unit
Machine hours per unit
Labour hours per unit
Under an activity-based product costing system, what is the cost per unit of Cheap?
Deluxe
2000
200
25
5
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F349709f6-3e99-49ce-9384-9f2b79e0bb19%2F7a16e155-5c34-4e86-ae37-031494f399ae%2Fs685kom_processed.png&w=3840&q=75)
Transcribed Image Text:HiTech Products manufactures three types of CD players: Cheap, Econo and Deluxe. HiTech uses an activity-based product costing
system. The company has identified five activities. Each activity, its cost and related activity driver are identified below:
Activity
Material handling
Material insertion
Automated machinery
Finishing
Packaging
Total manufacturing cost
Cost
$225 000
$2 475 000
A. $141.00
B. $272.00
C. $164.00
D. $228.24
$840 000
$170 000
$170 000
$3 880 000
The following information pertains to each product line of CD players:
Cheap
10 000
Activity Driver
Number of parts
Number of parts
Machine hours
Labour hours
Orders shipped
1000
10
1
2
Econo
5000
500
15
3
2
Units to be produced
Orders to be shipped
Number of parts per unit
Machine hours per unit
Labour hours per unit
Under an activity-based product costing system, what is the cost per unit of Cheap?
Deluxe
2000
200
25
5
2
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