National Inc. manufactures two models of CMD that can be used as cell phones, MPX,...
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National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model High F Great P Annual Sales in Units 11,300 17,300 National 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 $39.30 $18.90 Great P $26.70 $14.50 Budget factory overhead: Engineering and Design Quality Control Machinery Miscellaneous Overhead Total 2,660 engineering hours 13,090 inspection hours 33,970 machine hours 26,650 direct labor hours $ 425,600 350,190 541,600 132,650 $1,450,040 National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities: Engineering and design hours Quality control inspection hours Machine hours Labor hours High F Great P 1,090 1,570 5,770 7,320 20,410 13,560 12,130 14,520 Using the firm's volume-based costing, applied factory overhead per unit for the High F model is: (Rounded to the nearest cent.) Multiple Choice $59.01. $45.27 $58.10. O $62.99. O $46.12
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