Question: Boswell Company incurred an activity cost of 68 000 for
Boswell Company incurred an activity cost of $ 68,000 for inspecting 16,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 16,000 units of production, the inspection activity was limited to a random selection of 3,200 units out of the 16,000 units of production. Determine the inspection activity cost per unit on 16,000 units of total production both before and after the improvement.
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