Techno Incorporated manufactures two models of cameras that can be used as cell phones, MPX and digital camcorders.
Model Annual Sales in Units
High F
Great P
Techno uses a volumebased costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows:
High F Great P
Direct materials $ $
Direct labor $ $
Budget factory overhead:
Engineering and Design engineering hours $
Quality Control inspection hours
Machinery machine hours
Miscellaneous Overhead direct labor hours
Total $
Techno's controller had been researching activitybased costing and decided to switch to it A special study determined Techno's two products have the following budgeted activities:
High F Great P
Engineering and design hours
Quality control inspection hours
Machine hours
Labor hours
Using activitybased costing, total overhead per unit of the High F model is: Rounded to the nearest cent.
Multiple Choice
$
$
$
$
$
