Exhibit 17-2 BigView Monitors Manufactures Three Different Sizes of Computer

question 24

Multiple Choice

Exhibit 17-2 BigView Monitors manufactures three different sizes of computer monitors: 15-inch, 17-inch, and 20-inch. The company has recently implemented an activity-based costing system. BigView has identified five different production activities as well as the best cost driver for each activity. Each activity and driver is listed below, along with the budgeted amount that is associated with each activity for next year.
The following information relates to each size of monitor and next year's anticipated manufacturing operations:

- Refer to Exhibit 17-2. Under an activity-based product costing system, what is the per unit cost for manufacturing overhead of 15-inch monitors (rounded) ?

• A) $95
• B) $155
• C) $177
• D) $273

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