?This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version?of the exam they are taking.?
A company manufactures two products, C and D, for which the following information is?available:??
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Product C? ? ? ? ? ? ? ? ? ? Product D? ? ? ? ? ? ? ? ? ?Total?
Budgeted production (units)? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 1,000? ? ? ? ? ? ? ? ? ? ? ? ? ??4,000? ? ? ? ? ? ? ? ? ? ? 5,000?
Labour hours per unit/in total? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 8? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 10? ? ? ? ? ? ? ? ? ??48,000?
Number of production runs required? ? ? ? ? ? ? ? ? ? ? ? ?13? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 15? ? ? ? ? ? ? ? ? ? ? ? ? ? 28?
Number of inspections during production? ? ? ? ? ? ? ? ?5? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?3? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 8?
Total production set up costs $140,000?
Total inspection costs $80,000??
Other overhead costs $96,000?
Other overhead costs are absorbed on the basis of labour hours per unit.?
Using activity-based costing, what is the budgeted overhead cost per unit of product D??