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
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education