Digital cameras and video cameras are two goods that are manufactured by Everlasting Company. Activity-based costing system is utilized by the firm. The annual production and sales volume of video cameras is 8,000 units and of digital cameras is 10,000 units. Direct costs for the video cameras are $153; for the digital cameras, direct costs are $122. For overhead costs, there are 3 activity cost pools attached with the given expected activities as well as estimated total costs: Activity Cost Estimated Expected Expected Total Pool Cost Activity Activity Video Digital Cameras Cameras Activity 1 Activity 2 Activity 3 $30,000 $45,000 100 500 600 600 300 900 $96,600 400 2,000 2,400 Using ABC, determine the following: • Total cost per video camera a. $162.50 b. $163.69 c. $168.35 d. $169.07
Digital cameras and video cameras are two goods that are manufactured by Everlasting Company. Activity-based costing system is utilized by the firm. The annual production and sales volume of video cameras is 8,000 units and of digital cameras is 10,000 units. Direct costs for the video cameras are $153; for the digital cameras, direct costs are $122. For overhead costs, there are 3 activity cost pools attached with the given expected activities as well as estimated total costs: Activity Cost Estimated Expected Expected Total Pool Cost Activity Activity Video Digital Cameras Cameras Activity 1 Activity 2 Activity 3 $30,000 $45,000 100 500 600 600 300 900 $96,600 400 2,000 2,400 Using ABC, determine the following: • Total cost per video camera a. $162.50 b. $163.69 c. $168.35 d. $169.07
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...
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