Morrison Company Morrison Company Manufactures Two Products: Digital Cameras and Video Cameras.The
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:
| 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 digital camera is approximately:
A) $126.82
B) $127.11
C) $130.55
D) $131.50
Correct Answer:
Verified
Correct Answer:
Verified
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