Greenspan Company Greenspan 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:
Refer to Greenspan Company.Using ABC,the total cost per digital camera is approximately:
A)$126.82
B)$127.11
C)$130.55
D)$131.50

Question

Greenspan Company Greenspan 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:
 Refer to Greenspan Company.Using ABC,the total cost per digital camera is approximately:
A)$126.82 
B)$127.11 
C)$130.55 
D)$131.50

Quizplus · Accepted Answer

The Answer of Greenspan Company Greenspan 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:
 Refer to Greenspan Company.Using ABC,the total cost per digital camera is approximately:
A)$126.82 
B)$127.11 
C)$130.55 
D)$131.50

Greenspan Company Greenspan Company Manufactures Two Products: Digital Cameras and Video