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ANSWER ONLY QUESTION IN BOLD PLEASE THAT IS 27) 26) Hi Def Video Co makes...

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Accounting

ANSWER ONLY QUESTION IN BOLD PLEASE THAT IS 27) 26) Hi Def Video Co makes two types of digital DVD players, economy and deluxe, with the following per unit cost information: $ECONOMY $DELUXE DIRECT MATERIALS $50 $100 DIRECT LABOR $25 $25 MANUFACTURING OVERHEAD ? ? TOTAL MANUFACTURING OVERHEAD ? ? UNITS PRODUCED $8000 $2000 The company currently applies $1,000,000 in manufacturing overhead to these two products on the basis of direct labor hours. Both products require two hours of direct labor to make one. If the applied overhead rate is $50 per direct labor hour, what is the final manufacturing cost per unit of the Deluxe model? A. 50 B. 175 C. 100 D 225 27) Using the information from question 26), if Hi Def wanted to implement ABC costing and had the following infomration gathered to determine the cost: COST POOL ACTIVITY COST COST DRIVER ECONOMY MODEL DELUXE MODEL MATERIAL HANDLING 250,000 NO. OF PARTS 40,000 60,000 QUALITY CONTROL 500,000 NO. OF INSPECTIONS 8,000 12,000 FINISHING 200,000 DIRECT LABOR HOUR 16,000 4,000 PACKAGING 50,000 NO. OF SHIPPED PACKETS 2,000 2,000 WHAT IS THE ACTIVITY RATE PER SHIPMENT FOR THE PACKAGING ACTIVITY COST POOL? A. $4.00 B. $12.50 C. $8.00 D. $2.50

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