What is the manufacturing cost to make one unit of model a

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Problem

Aviatrix Avionics makes three types of radios for small aircraft-Model A, Model B, and Model C. The manufacturing operations are mechanized, and there is no direct labor. Manufacturing overhead costs are significant, and Aviatrix has adopted an activity-based costing system. Direct materials costs per unit for each model are as follows: Model A - $22 Model B - $35 Model C - $36 Aviatrix has three activities-assembly, materials management, and testing. The cost driver for assembly is machine hours. The cost driver for materials management is the number of parts, and the cost driver for testing is the number of units of product. Total costs and production volumes for the year were estimated as follows: Total cost Allocation Base Cost Driver Assembly $792,000 123,750 Machine hours Materials management $136,000 85,000 Parts Testing $35,000 5,600 Units The Model A radio requires 12 parts to construct and 15 machine hours of processing. Get the instant assignment help. What is the manufacturing cost to make one unit of Model A?

Reference no: EM133927210

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