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A company produces two different products: Model A and Model B . Activity, budgeted cost, and budgeted activity usage information follows. Model A requires direct
A company produces two different products: Model A and Model B Activity, budgeted cost, and budgeted activity usage information follows. Model A requires direct materials of $ per unit and direct labor of $ per unit. Model B requires direct materials of $ per unit and direct labor of $ per unit.
tableProcessActivity,Budgeted Cost,Cost Driver,tableBudgeted ActivityUsageAssemblyMachining,$Machine hours MHSetupsNumber of setups,$QualityInspections,$Number of inspections,
Actual units produced and activities used follow.
tableUnits and Activities,Model AModel BUnits produced,Machine hours,SetupsInspections
Enter answers in the tabs below.
Required
Use activitybased costing to compute the activity rate for each activity,
tableActivityBudgeted Cost,Budgeted Activity Usage,Activity RateMachining
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