Orlando Avionics makes three types of radios for small aircraft Model A Model B and
Model C The manufacturing operations are mechanized automated and capitalintensive and
thus there is no direct labor. Manufacturing overhead costs are significant, and Orlando has
adopted an activitybased costing system. Direct materials costs per unit for each model are as
follows:
Orlando has three activities assembly, materials management, and testing. The cost driver for
assembly is machine hours. The cost driver for materials management is the number of parts, and
the cost driver for testing is the number of units of product. Total costs and production volumes
for the year were estimated as follows:
The Model A radio requires parts to construct and machine hours of processing. What is the
manufacturing cost to make one unit of Model ARound any intermediate calculations to the
nearest cent, and your final answer to the nearest dollar.
Answer the following questions using the information below:
Happy Valley Land and Snow Company okay you're not in Florida anymore provides the
following ABC costing information:
Invoices
The above activities used by their three departments are:
