Reference no: EM132491009

Question - Crystal Klear Ltd manufactures two types of headphones: Model101 and Model102.

The following is a list of the main activities undertaken to manufacture the headphones and their activity drivers for the month just ended.

Activity	Activity Cost ($)	Activity Drivers
Materials handling	198,000	No. of parts
Automated machining	997,500	No. of machine hours
Packaging	150,00	No. of orders
Total	1,345,500

 

	Activity Drivers Consumed
Activity Drivers	Model101	Model102	Total
No. of units	12,000	3,000	15,000
No. of orders	1,000	500	1,500
No. of parts per unit	10	15	25
No. of machine hours per unit	1	3	4

 Additional information:

	Model101	Model102	Total
Direct labour costs ($)	50,000	30,000	80,000
Direct material costs ($)	15,000	35,000	50,000

Question 1 - Under an activity-based costing (ABC) system, what is the cost of automated machining allocated to Model102?

Question 2 - Additional information provided (if required) is as follows:

1. The total cost of materials handling allocated to Model102 is $54000.00; and

2. The cost per activity driver for packaging is $100.00.

Under an ABC system, what is the overhead cost allocated to Model102?

Question 3 - Under an ABC system, what is the total cost per unit of Model102?