A company has two products: standard and deluxe. The company expects to produce 34,300 standard units and
Question:
A company has two products: standard and deluxe. The company expects to produce 34,300 standard units and 69,550 deluxe 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.
Required
1. What is the overhead cost per unit for the standard units?
2. What is the overhead cost per unit for the deluxeunits?
Transcribed Image Text:
Budgeted Activity of Cost Driver Activity Cost Pool Activity Activity 3.. . Budgeted Cost $87,000 62,000 93,000 Standard 3,000 4,500 2,500 Deluxe 2,800 5,500 5,250
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1 Expected Activity Activity Activity Cost Driver Rate 1 87000 5800 1500 2 62000 10000 620 3 93000 7...View the full answer
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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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