The difference between the models is in the cost of the parts.
Nevada Instruments manufactures two models of calculators. The finance model is the Financial 5 and the scientific model is the Scientific 6. Both models are assembled in the same plant and require the same assembly operations. The difference between the models is in the cost of the parts.
The following data are available for August:
Nevada Instruments: August data
Financial 5
Scientific 6
Total
Number of Units
11,000
44,000
55,000
Parts Cost Per Unit
$25
$30
Other Costs:
Direct Labor
$68,200
Indirect Materials
$19,250
Overhead
$17,550
Total
$165,000
Complete the following: