A company sells two types of products: standard and deluxe. It prepares the following analysis showing...

 

Transcribed Image Text:

A company sells two types of products: standard and deluxe. It prepares the following analysis showing budgeted cost and cost driver activity for each of its three activities Activity Factory services Setup Quality control Budgeted Cost $ 104, 400 $ 11,500 5 116, 250 Activity Cost Driver Square feet Setups Units inspected Budgeted Activity Usage Deluxe 2,600 200 5,250 Standard Total 3,000 300 2, 500 5,800 500 7,750 Compute an activity rate for each activity using activity-based costing. Activity Budgeted Cost Budgeted Activity Usage Activity Rate Factory services Setup Quality control 104 400 11.500 116,250 A company sells two types of products: standard and deluxe. It prepares the following analysis showing budgeted cost and cost driver activity for each of its three activities Activity Factory services Setup Quality control Budgeted Cost $ 104, 400 $ 11,500 5 116, 250 Activity Cost Driver Square feet Setups Units inspected Budgeted Activity Usage Deluxe 2,600 200 5,250 Standard Total 3,000 300 2, 500 5,800 500 7,750 Compute an activity rate for each activity using activity-based costing. Activity Budgeted Cost Budgeted Activity Usage Activity Rate Factory services Setup Quality control 104 400 11.500 116,250

Answer rating: 100% (QA)

Budgeted usage Activity rate Standard Deluxe ... View the full answer