A company uses an activity -based costing system. The company manufactures three products, details of which are
Question:
A company uses an activity -based costing system.
The company manufactures three products, details of which are given below:
Annual inspection costs are $150,000.
The inspection cost per unit of Product Y is closest to:
(a) $0.23
(b) $0.33
(c) $13.39
(d) $0.27
Transcribed Image Text:
Annual production (units) Batch size (units) Number of inspections per batch Product X 160,000 100 3 Product Y 200,000 50 4 Product Z 100,000 25 6
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