Question: Garnett Company incurred an activity cost of 360 000 for
Garnett Company incurred an activity cost of $ 360,000 for inspecting 60,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 60,000 units of production, the inspection activity was limited to 30% of the production. Determine the inspection activity cost per unit on 60,000 units of total production both before and after the improvement.
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