Question
Plexitrop Manufacturing produces two types of mattresses: basic and luxury. The company uses activity-based costing and has identified four activities. The activities, along with the
Plexitrop Manufacturing produces two types of mattresses: basic and luxury. The company uses activity-based costing and has identified four activities. The activities, along with the budgeted manufacturing overhead cost and other relevant data are as follows:
| Quantity of Cost Driver | |||
| Activity | Basic | Luxury | Overhead Cost |
| Order processing | 10,000 | 40,000 | $80,000 |
| Setups | 3,000 | 2,000 | $150,000 |
| Parts administration | 50 | 30 | $160,000 |
| Materials receipts | 150 | 600 | $90,000 |
What is the activity rate for materials receipts?
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International Accounting A User Perspective
Authors: Suadagaran, Shahrokh M, Smith Lawrence Murphy
5th Edition
1531018661, 9781531018665
