Question
Lucern Company reports the following for its overhead cost for the year. Budgeted Cost Budgeted Activity Usage $24,500 Activity Engineering support Electricity Setup 34,000
Lucern Company reports the following for its overhead cost for the year. Budgeted Cost Budgeted Activity Usage $24,500 Activity Engineering support Electricity Setup 34,000 52,500 70 design changes 3,400 machine hours 350 setups Required: 1. Compute the activity rate for each activity using activity based costing. 2. The company's Pro model used these activities to produce 1,200 units during the year: 2 design changes, 140 machine hours, and 12 setups. Allocate overhead cost to the Pro model and compute its overhead cost per unit using activity based costing (Use cells A4 to D7 from the given information to complete this question.) Units produced 1,200 Design Changes 2 Machine Hours 140 Setups 12
Step by Step Solution
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