problem 1-39(static) cost data for managerial purpose (LO 1-3)

Problem 1-39 (Static) Cost Data for Managerial Purposes (LO 1-3) Imperial Devices (ID) has offered to supply the state government with one model of its security screening device at "cost plus 20 percent" ID operates a manufacturing plant that can produce 66,000 devices per year, but it normally produces 60,000 . The costs to produce 60,000 devices follow: Based on these data, company management expects to receive $522 ( $435120 percent) per monitor for those sold on this: contract. After completing 500 monitors, the company sent a bill (invoice) to the government for $261,000 ( =500 monitors * $522 per monitor) The president of the company received a call from a state auditot, who stated that the per monitor cost should be: Therefore, the price per monitor should be $324(=$270120 percent). The state government ignored marketing costs because the contract bypassed the usual selling channels. Required: For each of the four situations, calculate the cost basis per device based on the information shown above. (Round intermediate calculations and final answers to 2 decimal places.) Options: A. Only the differential production costs could be considered as the cost basis: B. The total cost per device for normal production of 60,000 devices could be used as the cost basis. C. The total cost per device for production of 66,000 devices, excluding marketing costs, could be used as the cost basis D. The total cost per device for production of 66,000 devices, including marketing costs, could be used as the cost bast