Blusteel Ltd Manufactures Assignment

Blusteel Ltd manufactures Blu-ray players and uses an activity-based product costing system that assigns labour and overhead costs. Below is an incomplete bill of activities for the high-volume product BluStandard. Page 388 Blusteel Ltd bill of activities:

BluStandard Annual quantity of activity driver used by the product Activity Cost per unit of activity driver Process payables $90 per purchase order 400 purchase orders Program production $337.50 per production schedule 100 schedules Process sales order $112.50 per sales order 300 sales orders Issue materials $180 per issue 100 issues Set up solder machine $237 per setup 100 setups Solder circuit boards $22.50 per solder joint 40 000 solder joints Insert motor $45 per player 5 000 players Assemble player $27 per player 5 000 players Design player Directly assigned cost of $18 000 for model BluStandard Required: 1. Complete the bill of activities and estimate the total activity cost of the BluStandard player, calculated on an annual and per unit basis, assuming the annual production is 5 000 units. 2. If the direct material cost of a Blu Standard player is $67.50 per unit, what is the total unit cost of the product? 3. Explain the treatment of the costs of the activity design player'. .

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