Newkirk Co. has identified one of its cost pools to be quality control and has assigned ($50,000)

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Newkirk Co. has identified one of its cost pools to be quality control and has assigned \($50,000\) to that pool. Number of inspections has been chosen as the cost driver for this pool; Newkirk performs 25,000 inspections annually. Suppose Newkirk manufactures two products that consume 10,000 and 15,000 inspections each. Using activity rates, determine the amount of quality control cost to be assigned to each of Newkirk’s product lines.

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Managerial Accounting

ISBN: 9780078110771

1st Edition

Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips

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