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PART B PLEASE Marigold Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach
PART B PLEASE
Marigold 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. Cost Driver Cost Driver Quantity Activity Machine setup Inspection Activity Overhead $ $ 191.250 2,250 168,750 # of setups # of quality tests # of purchase orders 450 Materials receiving 315,000 3,500 The budgeted data for smartphone case production are as follows. Direct materials $2.70 per unit Direct labor $0.50 per unit Number of setups 225 Number of quality tests 425 60 Number of purchase orders Production 306,500 units Your answer is correct. Calculate the activity rate for each cost pool. $ Machine setup 85 / setup 375 /test Inspection $ 90 /PO Materials receiving e Textbook and Media Attempts: 1 of 3 used (b) Your answer is incorrect. Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, eg. 15.25.) $ Activity-based unit cost Step by Step Solution
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