Activity$-$Based Budget

Highlands Industries has the following budget information available for February:

Use activity based costing to prepare a manufacturing cost budget for February. Clearly distinguish between unit, batch, and facility$-$level costs.Activity$-$Based Budget

Highlands Industries has the following budget information available for February:

Units manufactured $30,000$

Factory administration $$65,000$

Assembly $0\mathrm{.}5$ hour per unit X $$12$

Direct materials $2$ pounds per unit X $$4$

Inspection $$250$ per batch of $1,000$ units

Manufacturing overhead $$5$ per unit

Product development $$20,000$

Setup cost $$15$ per batch of $1,000$ units