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1. Refer to Greenspan Company. Using ABC, the total cost per digital camera is approximately: *

a. $126.82

b. $127.11

c. $130.55

d. $131.50

2. Refer to Greenspan Company. Using ABC, the total cost per video camera is approximately: *

a. $162.50

b. $163.69

c. $168.35

d. $169.07

Greenspan Company Greenspan Company manufactures two products: digital cameras and video cameras. The company uses an activity-based costing system. The annual production and sales volume of digital cameras is 10,000 units and of video cameras is 8,000 units. Direct costs for the digital cameras are $122; for the video cameras, direct costs are $153. For overhead costs, there are three activity cost pools with the following expected activities and estimated total costs: Activity Estimated Expected Activity Expected Activity Cost Pool Cost Digital Cameras Video Cameras Total Activity 1 $30,000 100 500 600 Activity 2 $45,000 600 300 900 Activity 3 $96.600 400 2,000 2,400