Question
Atmel, Inc., manufactures and sells two products. Data with regard to these products is given below. Product A Product B Units produced and sold 30,000
Atmel, Inc., manufactures and sells two products. Data with regard to these products is given below. Product A Product B Units produced and sold 30,000 12,000 Machine hours required per unit 2 3 Receiving orders per product line 50 150 Production orders per product line 12 18 Production runs 8 12 Inspections 20 30 Total budgeted machine hours are 100,000. The budgeted overhead costs are shown below. Receiving costs $450,000 Engineering costs 300,000 Machine setup costs 25,000 Inspection costs 200,000 Total budgeted overhead costs $975,000 Using activity-based costing, the per-unit overhead cost allocation of receiving costs for product A is:
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