Question
In: Accounting
HiTech Products manufactures three types of remote control devices Economy.
HiTech Products 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 | Cost | Cost Driver |
| Material handling | $ 225,000 | Number of parts |
| Material insertion | 2,475,000 | Number of parts |
| Automated machinery | 840,000 | Machine hours |
| Finishing | 170,000 | Direct labor hours |
| Packaging | 170,000 | Orders shipped |
| Total | $3,880,000 |
The following information pertains to the three product lines for next year:
| Units to be produced | Economy | Standard | Deluxe |
|---|---|---|---|
| Orders to be shipped | 10,000 | 5,000 | 2,000 |
| Number of parte per unit | 1,000 | 500 | 200 |
| Machine hours per unit | 1 | 3 | 5 |
| Labor hours per unit | 2 | 2 | 2 |
17. Under an activity-based costing system, what is the per-unit cost of Economy?
A $164. B. $141 C. $225. D. $228. E. An amount other than those listed above.
18. Assume that HiTech is using a volume-based costing system, and the preceding manufacturing costs are applied to all products based on direct labor hours. How much of the preceding cost would be assigned to Deluxe?
A $456,471 B $646.471 $961,176. D $1,141,176 E An amount other than those listed above.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
HiTech Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses...
HiTech Products 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 Cost
Material Handling $225,000
Material Insertion $2,475,000
Automated machinery $840,000
Finishing $170,000
Packaging $170,000
The following information pertains to the three product
lines for next year:
Economy Standard Deluxe
Unit 2 be prod. 10,000 5,000 2,000
Order 2 ship 1,000 500...
HiTech Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses...
HiTech Products 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
Cost
Cost
Driver
Material
handling
$269,000
Number of
parts
Material
insertion
3,390,000
Number of
parts
Automated
machinery
872,000
Machine
hours
Finishing
256,000
Direct labor
hours
Packaging
256,000
Orders
shipped
Total
$5,043,000
...
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Barnett Products 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. The following information pertains to the three product lines for next year: What is Barnett's pool rate for the material-insertion activity?
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Activity Budgeted
Costs Cost
Driver
Material
Handling 225,000 #
of Parts
Material
Insertion 2,475,000 #
of Parts
Automate
Machinery 840,000 Machine
Hours
Finishing 170,000 Labor
Hours
Packaging 170,000 Orders
Shipped
Total indirect
Manufacturing 3,880,000
costs
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69,000
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215,000
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