Basic Toaster

Deluxe Toaster

Volume

20,000 units

5,000 units

Machine Hours

1,000

2,400

Batches

315

125

Engineering Modifications

20

50

Prime Costs

$20,000

$30,000

Market Price

$25 per unit

$60 per unit

Costs

Driver

Engineering Support

$15,900

Engineering Modifications

Electricity

25,000

Machine Hours

Setup costs

33,900

Batches

PopUp Company produces two types of toasters, basic and deluxe. For the current period, the company reports the following data: Basic Toaster Deluxe Toaster Volume 20,000 units 5,000 units Machine Hours 1,000 2,400 Batches 315 125 Engineering Modifications 20 50 Prime Costs $20,000 $30,000 Market Price $25 per unit $60 per unit Additional Information Follows Costs Driver Engineering Support $15,900 Engineering Modifications Electricity 25,000 Machine Hours Setup costs 33,900 Batches 1) Compute the manufacturing cost per unit of each toaster using the current unit-based approach. Under this system costs are assigned to the toasters on the basis of machine hours. 2) Compute the manufacturing cost per unit of each toaster using an activy-based costing approach. Also, prepare sample budgeted income statements and balance sheets based on the costing data you calculated. You can make your own assumptions related to the number needed to complete these statements. Answer questions in a spreadsheet format with formulas.