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A company sells two types of products: standard and deluxe. It prepares the following analysis showing budgeted cost and cost driver activity for each
A company sells two types of products: standard and deluxe. It prepares the following analysis showing budgeted cost and cost driver activity for each of its three activities. Activity Factory services Setup Quality control Budgeted Cost $ 145,000 $ 15,000 Activity Cost Driver Square feet Setups Standard Budgeted Activity Usage Deluxe Total 3,000 2,800 5,800 $ 170,500 Units inspected 300 2,500 200 5,250 500 7,750 Compute an activity rate for each activity using activity-based costing. Activity Budgeted Cost Budgeted Activity Usage Factory services Setup $ 145,000 15,000 Quality control 170,500 orders parts setups square feet Activity Rate A company sells two types of products: standard and deluxe. It prepares the following analysis showing budgeted cost and cost driver activity for each of its three activities. Activity Factory services Setup Quality control Budgeted Cost $ 145,000 Activity Cost Driver Square feet Standard Budgeted Activity Usage Deluxe Total 3,000 $ 15,000 Setups $ 170,500 Units inspected 300 2,500 2,800 200 5,250 5,800 500 7,750 Compute an activity rate for each activity using activity-based costing. Activity Budgeted Cost Budgeted Activity Usage Factory services $ 145,000 Setup 15,000 Quality control 170,500 Activity Rate per batch per invoice per model per order
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