Question

DQuestion 1 2 pts This question is based on Example #2 in the Chapter 4 Example packet. This example uses ABC to cost two different models of TV's. Assume all the data is the same as the problem in the packet, with the exception of the following numbers for the activity allocation base for all the Medium TV's (3000 TV's) produced. # of material handling orders 359 14551 4681 # of machine hours # of packaging hours Assume that the activity based overhead rates do not change from what was calculated in the problem ($300 per material order handled, $14 per machine hour, and $9 per packaging hour) What is the total cost of producing 1 medium TV, including direct materials, direct labor and manufacturing overhead? Hint: remember that the $660,000 for direct materials and $216,000 for direct labor were for all 000 medium TV's produced. Likewise, the overhead numbers that you will arrive at using the new activity allocation base numbers are for 3000 TV's. So don't forget to divide your final answer by 3000 to arrive at the cost of 1 TV. Round your final answer to the nearest whole number, and don't enter dollar signs.

Answer 1

Calculate following

Overhead
Material handling (359*300)	107700
Machining (14551*14)	203714
Packing (4681*9)	42129
Total manufacturing overhead	353543
Direct material	660000
Direct labor	216000
Total manufacturing cost	1229543
Unit	3000
Cost per unit	409.85 or 410

So answer is 410