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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 Cost Driver Quantity Activity Overheads $ 105,000 # of setups 1,500 Machine setup Inspection Materials receiving 90.000 # of quality tests 300 150,000 #of purchase orders 2.000 The budgeted data for smartphone case production are as follows. $ 1.90 per unit $0.65 per unit Direct materials Direct labor Number of setups Number of quality tests Number of purchase orders 150 350 30 Production 235,500 units e Textbook and Media Attempts: (b) Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, es. 15.25.) Activity-based unit cost e Textbook and Media Save for later Attempts: 0 of 3 used Submit Ar O A Pr Ae AU DO
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