Business, 31.03.2020 02:47 ctomo2004

Ellix Company manufactures two models of ultra-high fidelity speakers—the X200 model and the X99 model. Data regarding the two products follow: Product Direct Labor-Hours Annual Production Total Direct Labor-Hours X200 0.2 DLHs per unit 22,000 units 4,400 DLHs X99 0.4 DLHs per unit 43,000 units 17,200 DLHs 21,600 DLHs Additional information about the company follows: a. Model X200 requires $43 in direct materials per unit, and model X99 requires $30. b. The direct labor workers are paid $40 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model X200 is more complex to manufacture than model X99 and requires the use of special equipment. e. Because of the special work required in (d) above, the company is considering the use of activity-based absorption costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified as follows:

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Ellix Company manufactures two models of ultra-high fidelity speakers—the X200 model and the X99 mod...

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