Question

Using automated production processes, Quinton Videos produces two kinds of digital camcorders: N100 for the novice and D200 for the hobbyist. The company has found activity-based costing useful in assigning overhead costs to its products. It has identified the following five major activities involved in producing the camcorders.


Activity measures for the two kinds of camcorders follow.


Required
a. Compute the cost per unit of N100 and D200, assuming that Quinton made 5,000 units of N100 and 2,500 units of D200.
b. Explain why the D200 camcorders cost more to make although their direct costs are less than those for the N100camcorders.


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  • CreatedFebruary 07, 2014
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