Reference no: EM133179317
Question - Xander Company produces televisions. One of its plants produces two versions of televisions: a basic model and a premium model. At the beginning of the year, the following data were prepared for the plant:
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Basic Model
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Premium Model
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Expected Quantity
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20,000
|
10,000
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|
Selling cost per unit
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$90
|
$200
|
|
Prime costs per unit
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$40
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$80
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Machine Hours
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2,500
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2,500
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|
Number of purchase requisitions
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500
|
1,500
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|
Maintenance hours
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2,000
|
6,000
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Number of setups
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8
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32
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Additionally, the following overhead activity costs are reported:
Maintaining equipment $220,000
Setting up equipment $112,000
Purchasing materials $82,000
Total $419,000
Xander uses activity-based costing to calculate product cost.
Required -
A. What is the activity rate for maintaining equipment based on maintenance hours?
B. What is the activity rate for setting up equipment based on number of setups?
C. What is the activity rate for purchasing materials based on number of requisitions?
D. What is the unit cost of the basic model?
E. What is the unit cost of the premium model?