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