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S Ltd. manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has Identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Material handling Material insertion Automated machinery Finishing Packaging Total Cost $ 305,000 3,050,000 Cost Driver Number of parts Number of parts Machine hours 218,000 Direct labour hours 218,000 Orders shipped 1,185,600 $4,976,600 The following information pertains to the three product lines for next year: Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labour hours per unit Economy 11,600 1,160 10 1 2 Standard 6,600 660 15 32 3 2 Deluxe 3,600 360 25 5 2 Under S's activity-based costing system, what is the per-unit overhead cost of Deluxe?

S Ltd. manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has Identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Material handling Material insertion Automated machinery Finishing Packaging Total Cost $ 305,000 3,050,000 Cost Driver Number of parts Number of parts Machine hours 218,000 Direct labour hours 218,000 Orders shipped 1,185,600 $4,976,600 The following information pertains to the three product lines for next year: Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labour hours per unit Economy 11,600 1,160 10 1 2 Standard 6,600 660 15 32 3 2 Deluxe 3,600 360 25 5 2 Under S's activity-based costing system, what is the per-unit overhead cost of Deluxe?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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S Ltd. manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost Grivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Material handling Material insertion Automated machinery Finishing Packaging Total Cost $ 305,000 3,050,000 Cost Driver Number of parts Number of parts Machine hours 218,000 Direct labour hours 218,000 Orders shipped 1,185,600 $4,976,600 The following information pertains to the three product lines for next year: Economy Standard 11,600 6,600 1,160 660 15 3 2 Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labour hours per unit 10 1 2 Deluxe 3,600 360 25 5 2 Under S's activity-based costing system, what is the per-unit overhead cost of Deluxe?
Transcribed Image Text:S Ltd. manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost Grivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Material handling Material insertion Automated machinery Finishing Packaging Total Cost $ 305,000 3,050,000 Cost Driver Number of parts Number of parts Machine hours 218,000 Direct labour hours 218,000 Orders shipped 1,185,600 $4,976,600 The following information pertains to the three product lines for next year: Economy Standard 11,600 6,600 1,160 660 15 3 2 Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labour hours per unit 10 1 2 Deluxe 3,600 360 25 5 2 Under S's activity-based costing system, what is the per-unit overhead cost of Deluxe?
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