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Bonita Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its
Bonita Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows. Activity Machine setup Activity Overhead $ $ 211,200 Cost Driver Quantity 2,400 Cost Driver # of setups # of quality tests # of purchase orders Inspection 187,200 480 Materials receiving 353,400 3,800 The budgeted data for smartphone case production are as follows. Direct materials $ 2.85 per unit $0.47 per unit 240 Direct labor Number of setups Number of quality tests Number of purchase orders Production 440 30 232,750 units Your Answer Correct Answer Your answer is correct. Calculate the activity rate for each cost pool. $ Machine setup 88 / setup $ 390 Inspection /test $ 93/PO Materials receiving e Textbook and Media Solution Attempts: 1 of 3 used (b) Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, e.g. 15.25.) Activity-based unit cost $ e Textbook and Media Solution Save for Later Attempts: 0 of 3 used Submit
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