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Wieters Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based

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Wieters Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows.

Wieters Industries manufactures several products including a basic case for

The budgeted data for smartphone case production are as follows.
Direct materials ........ $2.50 per unit
Direct labor ......... $0.54 per unit
Number of setups ........ 92
Number of quality tests ..... 400
Number of purchase orders... 50
Production.......... 15,000 units

Required
a. Calculate the activity rate for each cost pool.
b. Calculate the activity-based unit cost of the smartphonecase.

Transcribed Image Text:

Activity Overhead S $ 200,000 120,000 252,000 Cost Driver Quantity 300 400 Activity Machine setup Inspection Cost Driver # of setups # of quality tests Materials receiving

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a Machine setup 200 000 800 setups 250 setup Inspection 120 000 400 tests …View the full answer


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Managerial Accounting

Managerial Accounting

ISBN: 978-1118338445

2nd edition

Authors: Charles E. Davis, Elizabeth Davis

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Question Posted: February 21, 2014 04:12:53
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