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Part B? Wieters Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for
Part B?
Wieters 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 Machine setup Inspection Materials receiving Activity Overhead $ $ 200,000 160,000 252,000 Cost Driver # of setups # of quality tests # of purchase orders Cost Driver Quantity 2,500 400 3,000 The budgeted data for smartphone case production are as follows. $1.25 per unit $0.80 per unit 260 Direct materials Direct labor Number of setups Number of quality tests Number of purchase orders Production 75 50 250,000 units Calculate the activity rate for each cost pool. $ Machine setup 80 / setup A 400/test Inspection $ 84 /PO Materials receiving eTextbook and Media Attempts: unlimited b) Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, e.g. 15.25.) $ $ Activity-based unit cost e Textbook and Media Save for Later Attempts: unlimited SubmitStep by Step Solution
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