Morrison Company Morrison Company Manufactures Two Products: Digital Cameras and Video Cameras.The

question 97

Multiple Choice

Morrison Company
Morrison Company manufactures two products: digital cameras and video cameras.The company uses an activity-based costing system.The annual production and sales volume of digital cameras is 10,000 units and of video cameras is 8,000 units.Direct costs for the digital cameras are $122;for the video cameras,direct costs are $153.
For overhead costs,there are three activity cost pools with the following expected activities and estimated total costs:

• A)$162.50
• B)$163.69
• C)$168.35
• D)$168.07

Activity Cost Pool	Estimated Cost	Expected Activity IPods	Expected Activity MP3 players	Total
Activity 1	$30,000	100	500	600
Activity 2	$45,000	600	300	900
Activity 3	$96,600	400	2,000	2,400

Refer to Morrison Company.Using ABC,the total cost per video camera is approximately:

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