Lucern Co. reports the following for its overhead cost for the year. 1. Compute the activity rate
Question:
Lucern Co. reports the following for its overhead cost for the year.
1. Compute the activity rate for each activity using activity-based costing.
2. The company's Pro model used these activities to produce 1,200 units during the year: 2 design changes, 140 machine hours, and 12 setups. Allocate overhead cost to the Pro model and compute its overhead cost per unit using activity-based costing.
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Step by Step Answer:
To compute the activity rates for each activity using activitybased costing ABC divide the total cos...View the full answer
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