Question

Ultimate Vision Corporation

Ultimate Vision Corporation has two product lines: LCD televisions and projection televisions. The company has budgeted the following production and overhead costs for the upcoming year:

LCD TV’s

Projection TV’s

1,500

2,250

20

30

15

25

$75,000

10,000

16,000

$180,000

Refer to Ultimate Vision Corporation. If the company uses an activity-based costing (ABC) system to allocate factory overhead, the machine maintenance cost allocated to projection TVs would be:

Please show caluclations

 

 

LCD TV’s

Projection TV’s

Units Produced

 

1,500

2,250

Direct labor hours per Unit

 

20

30

Material Moves per Product Line

 

15

25

Budgeted Materials Handling Cost

$75,000

 

 

Total Machine Hours

 

10,000

16,000

Machine Maintenance Costs

$180,000

 

 

 

 

 

 

 



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