Question
Example: Long Problem Randel Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented
Example: Long Problem
Randel Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below:
Cost Drivers by Product
Activity Cost PoolCost DriverEst. OverheadBudget Deluxe
Ordering and ReceivingOrders$130,000600400
Machine SetupSetups297,000500400
MachiningMachine hours1,000,000150,000100,000
AssemblyParts1,600,0001,200,000800,000
InspectionInspections300,000550450
Instructions
Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. Round your answer to the nearest cent.
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