Aksign overhead wsin P543B (101.2.3) VidPlayers Ine. manufiactures two types of

Question

Aksign overhead wsin P543B (101.2.3) VidPlayers Ine. manufiactures two types of DVD players: a deluxe model and a superior model raditional costing and The deluxe model is a multi-format progressive-scan DVD player with networking capability, Dolby digital, and DTS ABC: calculate unit decoder. The superior model's primary feature is progressive-scan. Annual production is 20,000 units for the deluxe and costs; classify activities 50,000 units for the standard as value-added or non Both products require two hours of direct labour for completion. Therefore, total annual direct labour hours are 140,000 or 2 hrs. x (20,000+ 50,000). Estimated annual manufacturing overhead is $980,000. Thus, the predetermined overhead rate is $7 or ($980,000+140,000) per direct labour hour. The direct materials cost per unit is $11 for the deluxe model and $42 for the superior model. The direct labour cost is $18 per unit for both the deluxe and the superior models. The company's managers identified six activity cost pools and related cost drivers, and estimated overhead by cost pool as follows.

Explanation / Answer

a.

b.

c.

d.

Per Chegg guidelines, 4 sub-parts have been answered.

Deluxe Superior Direct materials 11 42 Direct labor 18 18 Manufacturing overhead 14 14 Total unit cost $ 43 74

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