A company sells two types of products: standard and deluxe. It prepares the following analysis showing budgeted
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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. Compute an activity rate for each activity using activity-based costing.
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Activity Factory services.... Setup.... Quality control Budgeted Cost $87,000 10,000 93,000 Budgeted Activity Usage Activity Cost Driver Standard Deluxe Square feet Setups Units inspected 3,000 300 2,500 2,800 200 5,250 Total 5,800 500 7,750
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