Techno Incorporated manufactures two models of cameras that can be used as cell phones, MPX,...

70.2K

Verified Solution

Question

Accounting

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 11,600
Great P 17,600
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:
High F Great P
Direct materials $ 39.60 $ 27.00
Direct labor $ 19.20 $ 14.80
Budget factory overhead:
Engineering and Design 2,720 engineering hours $ 462,400
Quality Control 13,150 inspection hours 364,000
Machinery 34,030 machine hours 575,960
Miscellaneous Overhead 26,710 direct labor hours 159,360
Total $ 1,561,720
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:
High F Great P
Engineering and design hours 1,1201,600
Quality control inspection hours 5,8007,350
Machine hours 20,44013,590
Labor hours 12,16014,550
Using activity-based costing, total overhead per unit of the High F model is: (Rounded to the nearest cent.)
Multiple Choice
$66.33.
$170.00.
$45.02.
$62.06.
$47.83.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students