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Crane 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
Crane 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 Cost Driver Activity Overheads $ 105,000 Cost Driver Quantity 1,500 Machine setup of setups Inspection 90,000 300 Materials receiving # of quality tests # of purchase orders 150,000 2,000 The budgeted data for smartphone case production are as follows Direct materials $ 1.90 per unit 50.65 per unit Direct labor 150 Number of setups Number of quality tests Number of purchase orders 350 30 Production 235.500 units (a) Our an Production 235,500 units (a) X Your answer is incorrect. Calculate the activity rate for each cost pool. Machine setup setup /test Inspection Materials receiving /PO e Textbook and Media Save for Later Attempts: 1 of 3 used Submit Answ (b)
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