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Linda Industries manufactures several products including a basic case for a popular smart phone. The company is considering adopting an activity-based costing approach to set
Linda Industries manufactures several products including a basic case for a popular smart phone. The company is considering adopting an activity-based costing approach to set its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows. Activity Cost Driver Activity Overhead Cost $195,050 179,140 201,600 Cost Driver Quantity 830 Machine setup Inspection Materials receiving # of setups # of quality tests # of purchase orders 530 2,100 The budgeted data for smart phone case production are as follows. $2.60 per unit $0.59 per unit 120 Direct materials Direct labor Number of setups Number of quality tests Number of purchase orders Production 430 90 23,000 units (b) Calculate the activity-based unit cost of the smart phone case. (Round answers to 2 decimal places, e.g. 52.25.) Activity-based unit cost $ Save for Later Attempts: 0 of 1 used Submit
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