04 Jul PopUp Company Produces Two Types Of Toasters, Basic And Deluxe
PopUp Company produces two types of toasters, basic and deluxe. For the current period, the company reports the following data:
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
Costs Driver
Engineering Support $15,900 Engineering Modifications
Electricity 25,000 Machine Hours
Setup costs 33,900 Batches
1) Compute the manufacturing cost per unit of each toaster using the current unit-based approach.
Under this system costs are assigned to the toasters on the basis of machine hours.
2) Compute the manufacturing cost per unit of each toaster using an activy-based costing approach
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