Ring Inc. uses activity-based costing. The company produces two products: Clips and Rings. The expected annual...
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Ring Inc. uses activity-based costing. The company produces two products: Clips and Rings. The expected annual production of Clips is 1,300 units, while the expected annual production of Rings is 2,000 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows: Expected activity Rings 120 Activity cost pool Assembly Estimated cost $5,548 $26,015 $2,301 Testing Packing The cost pool activity rate for Testing would be (Round all answers to two decimal places.) Clips 610 1,300 60 660 145 Total 730 1,960 205 Ring Inc. uses activity-based costing. The company produces two products: Clips and Rings. The expected annual production of Clips is 1,300 units, while the expected annual production of Rings is 2,000 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows: Expected activity Rings 120 Activity cost pool Assembly Estimated cost $5,548 $26,015 $2,301 Testing Packing The cost pool activity rate for Testing would be (Round all answers to two decimal places.) Clips 610 1,300 60 660 145 Total 730 1,960 205
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To calculate the cost pool activity rate for Testing we need to divide the ... View the full answer
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
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