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

  

Answer rating: 100% (QA)

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