**Techno Incorporated: Manufacturing Case Study on Costing Systems**Techno Incorporated manufactures two models of cameras that can be used as cell phones, MPX, and digital camcorders:- **Model**: High F - **Annual Sales in Units**: 11,900- **Model**: Great P - **Annual Sales in Units**: 17,900### Costing System OverviewTechno 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 F:** - Direct materials: $39.90 - Direct labor: $19.50- **Great P:** - Direct materials: $27.30 - Direct labor: $15.10### Budget Factory OverheadThe budgeted factory overhead is categorized into different activities with associated costs:- **Engineering and Design**: - 2,780 engineering hours - Cost: $472,600- **Quality Control**: - 13,210 inspection hours - Cost: $260,600- **Machinery**: - 34,090 machine hours - Cost: $678,200- **Miscellaneous Overhead**: - 26,770 direct labor hours - Cost: $132,950- **Total Overhead**: $1,544,350### Activity-Based Costing ResearchTechno’s controller researched activity-based costing and shifted to it, finding the following budgeted activities for the two products:- **High F:** - Engineering and design hours: 1,150 - Quality control inspection hours: 5,830 - Machine hours: 20,470 - Labor hours: 12,190- **Great P:** - Engineering and design hours: 1,630 - Quality control inspection hours: 7,380 - Machine hours: 13,620 - Labor hours: 14,580### CalculationUsing the firm’s volume-based costing, the applied factory overhead per unit for the High F model is **to be calculated (rounded to the nearest cent).**The study above provides a detailed examination of how variable activities impact the cost structure in manufacturing and the shift from volume-based to activity-based costing systems. **Multiple Choice Question:**Please select the correct answer from the options below:1. ○ $59.952. ○ $63.923. ○ $47.334. ○ $46.425. ○ $59.90The image displays a multiple choice question with five possible answers, each represented by a circle that can be selected to indicate the chosen option.

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Description: **Techno Incorporated: Manufacturing Case Study on Costing Systems**Techno Incorporated manufactures two models of cameras that can be used as cell phones, MPX, and digital camcorders:- **Model**: High F - **Annual Sales in Units**: 11,900- **Model

Total direct labor cost = (Direct labor rate for High F x Annual sales) + (Direct labor rate for…

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Techno Incorporated manufactures two models of cameras that can be used as cell phones, MPX, and digital camcorders. Model Annual Sales in Units High F 11,900 Great P 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 F $ 39.90 $ 19.50 Great P $ 27.30 $ 15.10 Direct materials Direct labor Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead $ 472,600 2,780 13,210 34,090 engineering hours inspection hours 260,600 678, 200 132,950 machine hours 26,770 direct labor hours Total $ 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: High F Great P Engineering and design hours Quality control inspection hours Machine hours 1,150 5,830 20,470 12,190 1,630 7,380 13,620 14,580 Labor hours Using the firm's volume-based costing, applied factory overhead per unit for the High F model is: (Rounded to the nearest cent.)

Techno Incorporated manufactures two models of cameras that can be used as cell phones, MPX, and digital camcorders. Model Annual Sales in Units High F 11,900 Great P 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 F $ 39.90 $ 19.50 Great P $ 27.30 $ 15.10 Direct materials Direct labor Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead $ 472,600 2,780 13,210 34,090 engineering hours inspection hours 260,600 678, 200 132,950 machine hours 26,770 direct labor hours Total $ 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: High F Great P Engineering and design hours Quality control inspection hours Machine hours 1,150 5,830 20,470 12,190 1,630 7,380 13,620 14,580 Labor hours Using the firm's volume-based costing, applied factory overhead per unit for the High F model is: (Rounded to the nearest cent.)

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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