Ptech Ld. manufactures two models of smartphones The Quantum 9 has features designed for personal...

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Accounting

Ptech Ld. manufactures two models of smartphones The Quantum 9 has features designed for personal and family use. The Professional XP is designed for business and professional use. Data
Quantum Pro XP
Expected production 50,000 150,000
Direct materials cost $12.14 $28.64
Direct labour cost $10.86 $10.86
The Indirect manufacturing cost has been estimated data of $1,629,000 and the company is considering implementing an activity-based costing system in its plant and has identified four primary activities. Data on these activities are as follows:
Budgeted
ACTIVITY Quantum 9 Pro XP Cost
Equipment setup 50 setups 30 setups $44,000
Machine processing 30,000 machine hours 220,000 machine hours $875,000
Quality control 5,000 inspection 10,000 inspectors hours 630,000
Packaging and shipping 125 shipments 75 shipments $80,000
The company currently prices its products by adding a 65% markup to the total manufacturing cost.
REQUIRED
Compute the per-unit cost and selling price of both models of smartphones using an ABC costing system.

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