Requirements

Compute the unit cost of both the basic and deluxe toaster using both the unit-based approach, and the activity-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.

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 Engineering Support Electricity Setup costs Costs Driver $15,900 Engineering Modifications 25,000 Machine Hours 33,900 Batches