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| PopUp Company produces two types of toasters, basic and deluxe. For the current period, the company reports the following data: |
| | Basic Toaster | Deluxe Toaster |
| Volume | 20,000 units | 5,000 units |
| Machine Hours | 1,000 | 2,400 |
| Batches | 315 | 125 |
| Engineering Modifications | 20 | 50 |
| Prime Costs | $20,000 | $30,000 |
| Market Price | $25 per unit | $60 per unit |
| Additional Information Follows |
| | Costs | Driver |
| Engineering Support | $15,900 | Engineering Modifications |
| Electricity | 25,000 | Machine Hours |
| Setup costs | 33,900 | Batches |
| 1) Compute the manufacturing cost per unit of each toaster using the current unit-based approach. |
| Under this system costs are assigned to the toasters on the basis of machine hours. |
| 2) Compute the manufacturing cost per unit of each toaster using an activy-based costing approach |
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wp_pp.xls
