A Company has two products: X and Y. It has prepared the following analysis showing budgeted...
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A Company has two products: X and Y. It has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Cost Pool Activity 1 Activity 2 Activity 3 Per Budget Cost Product X Activity Product Y Activity 46,800 44,000 46,800 $3,600 $4,800 $6,300 25,200 36,000 43,200 Annual production and sales level of Product X is 161,100 units, and the annual production and sales level of Product Y is 275,200 units. Required: a) Compute the approximate overhead cost per unit of Product X. b) Compute the approximate overhead cost per unit of Product Y. A Company has two products: X and Y. It has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Cost Pool Activity 1 Activity 2 Activity 3 Per Budget Cost Product X Activity Product Y Activity 46,800 44,000 46,800 $3,600 $4,800 $6,300 25,200 36,000 43,200 Annual production and sales level of Product X is 161,100 units, and the annual production and sales level of Product Y is 275,200 units. Required: a) Compute the approximate overhead cost per unit of Product X. b) Compute the approximate overhead cost per unit of Product Y.
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Calculation of activity rate per activity Budgeted cost Total Activites b a Activit... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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