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 |
|
|
|
|
|
|