Question

Activity-Based Budget Highlands Industries has the following budget information available for February: Units manufactured 25,000 Factory...

Activity-Based Budget
Highlands Industries has the following budget information available for February:

Units manufactured 25,000
Factory administration $145,000
Assembly 0.25 hour per unit X $20
Direct materials 3 pounds per unit X $6
Inspection $40 per batch of 1,000 units
Manufacturing overhead $8 per unit
Product development $50,000
Setup cost $100 per batch of 1,000 units


Use activity-based costing to prepare a manufacturing cost budget for February. Clearly distinguish between unit, batch, and facility-level costs.

HighlandsIndustries
Activity-Based Manufacturing Cost Budget
For the Month of February
Unit-level costs:
Direct materials Answer
Assembly Answer
AnswerFactory administrationInspectionManufacturing overheadProduct development Answer Answer
Batch-level costs:
Setup Answer
AnswerFactory administrationInspectionManufacturing overheadProduct development Answer Answer
Product-level costs:
AnswerFactory administrationInspectionManufacturing overheadProduct development Answer
Facility-level costs:
AnswerFactory administrationInspectionManufacturing overheadProduct development Answer
Budgeted manufacturing costs Answer

Please answer all parts of the question.

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