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Score: 11.22 of 50 pts 2 of 3 (2 complete) HW Score: 36.22%, 36.22 of 100 pts %x*P4-37A (similar to) Question Help . Corbertt Company develops software for internet applications. The market is very competitive, Corbertt Company has just hired Nicole Merrell, a recent university graduate in accounting. and Corbertt Company's competitors continue to introduce new products at low prices. Merrell asks Software Department Manager Jeff Gire to join her in a pilot activity based costing Corbertt Company offers a wide variety of softwarefrom simple programs that enable new study. Merrell and Gire identify the following activities, related costs, and cost-allocation bases: users to create personal webpages to complex commercial search engines. Like most software (Click the icon to view the information.) companies, Corbertt Company's raw material costs are insignificant. Requirements Requirement 1. Compute the cost allocation rate for each activity. Determine the formula, then compute the cost allocation rate for each activity. (Round your answers to the nearest cent.) / Appl. Dev. $ 1 Estimated indirect activity cost 1,500,000 2.800,000 270,000 Activity Cost allocation base (estimated) = overhead rate 3 = $ 500,000 / application 14,000,000 = S 0.20 / line 1,500 = $ 180 /hour Content prod. $ Testing $ Requirement . Use the activity based cost allocation rates to compute the indirect cost of each unit of X-Page and X-Secure. (Hint: Compute the total activity costs allocated to each product line and then mailta tha annt marrinit 1/Dard the nantarit te the mannt naut Enter any number in the edit fields and then click Check Answer ? Estimated Estimated equirement 2. Use the activity based cost allocation rates to compute the indire d then compute the cost per unit.) (Round the cost per unit to the nearest ce X-Page oplications development 500000 Indirect Allocation Quantity of Activity Activity Costs Base Allocation Base Applications development .... $ 1,500,000 New applications 3 new applications Content production 2,800,000 Lines of code 14 million lines Testing ... 270,000 Testing hours 1,500 testing hours $ Total indirect costs. 4,570,000 ontent production esting tal costs umber of units . er unit cost Corbertt Company is planning to develop the following new applications: X-Pagesoftware for developing personal webpages X-Secure commercial security and firewall software X-Page requires 540,000 lines of code and 150 hours of testing, while X-Secure requires 8.1 million lines of code and 900 hours of testing. Corbertt Company expects to produce and sell er any number in the edit fields and then click Check Answer. onnnn...ito af V Danaand10..nito afvoer.ee
