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A company has two products: standard and deluxe. The company expects to produce 36,575 standard units and 62,440 deluxe units. It uses activity-based costing and

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A company has two products: standard and deluxe. The company expects to produce 36,575 standard units and 62,440 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 Budgeted activity of Cost Driver Activity Cost Pool Budgeted Cost Standard Deluxe Activity 1 2,500 Activity 2 $94,000 4,500 Activity 3 $88,160 3,000 2,800 $94,550 5,250 5,500 Required: 1. Compute overhead rates for each of the three activities. 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rate 1 $ 2 94,550 94,000 88,160 3 Standard Activity Activity Driver Activity Rate Allocated Cost 1 2. 3 Deluxe Activity Activity Driver Activity Rate Allocated Cost Savo Activity 3 $88,160 3,000 2,800 Required: 1. Compute overhead rates for each of the three activities. 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rate 1 $ 2 94,550 94,000 88,160 3 Standard Activity Activity Driver Activity Rate Allocated Cost 1 2. 3 Deluxe Activity Activity Driver Activity Rate Allocated Cost 1 2 3

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