Boston Computers (BC) manufactures and sells computers and printers to several n

Question

Boston Computers (BC) manufactures and sells computers and printers to several nationwide retailers. Ray Bourque is the manager of the printer division. Its two largest selling printers are the Boston 4 and Boston 77 (hereafter referred to as B4 and B77) The manufacturing cost of each printer is calculated using BC's activity-based costing system. BC has one direct manufacturing cost category (direct materials) and the following five indirect cost pools INDIR ST POOL ALLO BASE ALLOCATION RATE 1.Materials-handling 2.Assembly management Number of parts Hours of assembly time S1.20 per part $40.00 per hour of assembly time 3.Machine insertion of partsNumber of machine-inserted S0.70 per machine parts inserted part 4.Manual insertion of parts Number of manually- $2.10 per manually- inserted parts Hours of quality testing time inserted part 5.Quality testing $25.00 per testing hour

Explanation / Answer

Solution:-

Statement showing manufacturing cost of B4 and B77:-

Note:- As per chegg guidelines if more than one question is posted then we liable to answer only first question.

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B4 B77 Direct material 407.50 292.10 Material handling 102 55.2 Assemble management 128 76 Machine insertion of parts 34.3 21.7 Manual insertion of parts 75.6 31.5 Quality testing 35 27.5 Total manufacturing cost 782.4 504

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