A company has two products: mini and regular. The company expects to produce 36,375 mini units...

 

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A company has two products: mini and regular. The company expects to produce 36,375 mini units and 35,957 regular units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Budgeted Activity of Cost Driver Activity Cost Budgeted Cost Mini Regular Pool Purchase Purchase Activity 1: %24 98,415 2,000 3,000 Purchasing Orders Orders Activity 2: %24 96,000 5,500 Designs 6,500 Designs Designing Activity 3: $ 88,000 3,000 Orders 5,000 Orders Shipping Total cost for mini units are $12,514 in materials and $23,000 in labor; total cost for regular units $14,923 in materials and $40,000 in labor. Compute overhead rates for each of the three activities. Question: What is the total cost per unit for the regular units? (Round activity rate and cost per unit answers to 2 decimal places.) A company has two products: mini and regular. The company expects to produce 36,375 mini units and 35,957 regular units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Budgeted Activity of Cost Driver Activity Cost Budgeted Cost Mini Regular Pool Purchase Purchase Activity 1: %24 98,415 2,000 3,000 Purchasing Orders Orders Activity 2: %24 96,000 5,500 Designs 6,500 Designs Designing Activity 3: $ 88,000 3,000 Orders 5,000 Orders Shipping Total cost for mini units are $12,514 in materials and $23,000 in labor; total cost for regular units $14,923 in materials and $40,000 in labor. Compute overhead rates for each of the three activities. Question: What is the total cost per unit for the regular units? (Round activity rate and cost per unit answers to 2 decimal places.)

Answer rating: 100% (QA)

Activity Cost pool Budgeted Costs A Activity Base Total Bud... View the full answer