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 $30,000 100 500 600 Activity 2 $45,000 600 300 900 Activity 3 $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 • Total cost per digital camera $126.82 b. $127.11 c. $130.55 d. $131.50

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 $30,000 100 500 600 Activity 2 $45,000 600 300 900 Activity 3 $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 • Total cost per digital camera $126.82 b. $127.11 c. $130.55 d. $131.50

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...

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