Show your complete solution Tops Music Company manufactures compact disc changers that are installed in the trunks ofvehicles. Tops Music Company uses activity-based costing and has been asked to bid on30,000 CD changers to be installed on a fleet of Ford Expeditions. Cost information follows:Cost Allocation Rate$ 45.00 per purchaseorder1.30 per part3.50 per finished unitActivityPurchasingAllocation BaseTotal Cost400$18,000AssemblingPackagingTotal Overhead Cost1823.430000105,000$123.023.4Each CD changer requires 18 parts, and direct materials cost of $21.50. A total of 400 purchaseorders will be necessary if Tops Music Company bid is accepted.a. Compute the total cost of the 30,000 CD changers.b. Compute the average cost per unit,C. Assumes Tops Music Company adds a 30% markup to total cost, determine the total pricethe company will bid for the Ford Expedition order.

Average cost = Total CostNumber of units

Tops Music Company manufactures compact disc changers that are installed in the trunks of vehicles. Tops Music Company uses activity-based costing and has been asked to bid on 30,000 CD changers to be installed on a fleet of Ford Expeditions. Cost information follows: Allocation Base Total Cost $18,000 Cost Allocation Rate $ 45.00 per purchase order 1.30 per part 3.50 per finished unit Activity Purchasing 400 Assembling Packaging Total Overhead Cost 18 23.4 105,000 $123.023.4 30000 Each CD changer requires 18 parts, and direct materials cost of $21.50. A total of 400 purchase orders will be necessary if Tops Music Company bid is accepted. a. Compute the total cost of the 30,000 CD changers. b. Compute the average cost per unit| c. Assumes Tops Music Company adds a 30% markup to total cost, determine the total price the company will bid for the Ford Expedition order.

Tops Music Company manufactures compact disc changers that are installed in the trunks of vehicles. Tops Music Company uses activity-based costing and has been asked to bid on 30,000 CD changers to be installed on a fleet of Ford Expeditions. Cost information follows: Allocation Base Total Cost $18,000 Cost Allocation Rate $ 45.00 per purchase order 1.30 per part 3.50 per finished unit Activity Purchasing 400 Assembling Packaging Total Overhead Cost 18 23.4 105,000 $123.023.4 30000 Each CD changer requires 18 parts, and direct materials cost of $21.50. A total of 400 purchase orders will be necessary if Tops Music Company bid is accepted. a. Compute the total cost of the 30,000 CD changers. b. Compute the average cost per unit| c. Assumes Tops Music Company adds a 30% markup to total cost, determine the total price the company will bid for the Ford Expedition order.

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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