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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 

ActivityCostCost Driver
Material handling$ 225,000Number of parts
Material insertion2,475,000Number of parts
Automated machinery840,000Machine hours
Finishing170,000Direct labor hours
Packaging170,000Orders shipped 
Total   $3,880,000 

The following information pertains to the three product lines for next year: 


Units to be producedEconomyStandardDeluxe
Orders to be shipped10,0005,0002,000
Number of parte per unit1,000500200
Machine hours per unit135
Labor hours per unit222


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.

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