Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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, Cost Driver Quantity 880 Activity Machine setup Inspection Materials receiving Activity Overhead $ $ 226,160 124,230 261,300 Cost Driver # of setups # of quality tests # of purchase orders 410 1,950 The budgeted data for smartphone case production are as follows. $2.85 per unit $0.47 per unit Direct materials Direct labor Number of setups Number of quality tests Number of purchase orders Production 440 30 15,000 units Calculate the activity rate for each cost pool. (Round answers to o decimal places, e.g. 5,275.) Machine setup / setup Inspection / test Materials receiving $ / PO Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, e.g. 15.25.) Activity-based unit cost $ Click if you would like to Show Work for this question: Open Show Work
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started