This question is based on example #2 in the chapter 4 example packet. this example uses abc to cost two different models of tv's. assume all the data is the same as the problem in the packet, with the exception of the following numbers for the activity allocation base for all the medium tv's (3000 tv's) produced.
# of material handling orders 359
# of machine hours 14551
# of packaging hours
assume that the activity based overhead rates do not change from what was calculated in the problem ($300 per material order handled, $14 per machine hour, and $9 per packaging hour). what is the total cost of producing 1 medium tv, including direct materials, direct labor and manufacturing overhead? hint: remember that the $660,000 for direct materials and $216,000 for direct labor were for all 000 medium tv's produced. likewise, the overhead numbers that you will arrive at using the new activity allocation base numbers are for 3000 tv's. so don't forget to divide your final answer by 3000 to arrive at the cost of 1 tv. round your final answer to the nearest whole number, and don't enter dollar signs.