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Rand Company computed the following activity rates using activity-based costing. The companys deluxe model used the following activities to produce 1,500 units. Compute the overhead
Rand Company computed the following activity rates using activity-based costing.
The companys deluxe model used the following activities to produce 1,500 units.
Compute the overhead cost per unit for the deluxe model using activity-based costing.
\begin{tabular}{lc} Activity & Actual Activity Usage \\ \hline Setup & 3 setups \\ Materials handling & 24 materials requisitions \\ Inspection & 1,500 units inspected \end{tabular} \begin{tabular}{|l|l|l|l|l|l|} \hline Activity & \multicolumn{2}{|c|}{ Activity Usage } & & Allocated Cost \\ \hline Setup & & & & & \\ \hline Materials handling & & & & & \\ \hline Inspection & & & & & \\ \hline Total allocated cost & & & & & \\ \hline Units produced & & & & & \\ \hline Overhead cost per unit & & & & \\ \hline \hline \end{tabular} ActivitySetupMaterialshandlingInspectionActivityRate$1,080persetup$50permaterialsrequisition$3perunitinspected
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