Techno Incorporated manufactures two models of cameras that can be used as cell phones, MPX,...
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Techno Incorporated manufactures two models of cameras that can be used as cell phones, MPX, and digital camcorders. Model High F Great P Annual Sales in Units 10,700 16,700 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: Direct materials Direct labor High F $ 38.70 $ 18.30 Great P $ 26.10 $ 13.90 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,540 12,970 33,850 26,530 engineering hours inspection hours machine hours direct labor hours $ 431,800 258,200 506,850 105,880 $ 1,302,730 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: Engineering and design hours Quality control inspection hours Machine hours Labor hours High F 1,030 5,710 20,350 12,070 Great P 1,510 7,260 13,500 14,460 What is the overhead application rate using the firm's volume-based costing system? (Rounded to the nearest percent or cents.)
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