HiTech Products Manufactures Three Types of CD Players: Cheap, Econo

question 88

Multiple Choice

HiTech Products manufactures three types of CD players: Cheap, Econo and Deluxe. HiTech uses an activity-based product costing system. The company has identified five activities. Each activity, its cost and related activity driver are identified below:
The following information pertains to each product line of CD players:
Under an activity-based product costing system, what is the cost per unit of Econo (to the nearest dollar) ?

• A) $272
• B) $282
• C) $228
• D) $320

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Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.

Flexible Budget Sales

Projected sales figures that can adjust based on changes in production levels or market conditions.

Actual Sales

Revenue generated from goods sold or services provided in a particular period, factually recorded.

Sales Variance

Sales variance is the difference between actual sales and budgeted or planned sales, used to assess performance.