CompInc Produces Two Products: a High-End Laptop Computer and an Inexpensive

question 9

Multiple Choice

CompInc. produces two products: a high-end laptop computer and an inexpensive laptop. The two products use two overhead activities, which have the following costs:
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.
$\begin{array}{lr}\text { Setting up equipment } & \$ 8,000 \\\text { Machining } & 48,000\end{array}$ $$\begin{array} { l r r } & \text { High-end } & \text { Inexpensive } \\\text { Direct Labour } & \$ 24,000 & \$ 8,000 \\\text { Direct Materials } & 15,000 & 4,000 \\\text { Units } & 2,000 & 2,000 \\\text { Machine Hours } & 1,000 & 3,000 \\\text { Setup Hours } & 150 & 50\end{array}$$
-Refer to the Figure.What is the overhead cost per unit for each inexpensive laptop,when using overhead rates that are based on machine hours and setup hours?

• A)$21.00 per unit
• B)$19.00 per unit
• C)$12.00 per unit
• D)$10.00 per unit

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Definitions:

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A medical condition where the kidneys are unable to adequately filter waste products from the blood.

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A technique whereby individuals manually insert a catheter into the bladder to empty it; used by people who cannot naturally urinate.

Sterile Technique

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