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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
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 $ $ 200,000 120,000 252,000 Cost Driver # of setups # of quality tests 4 of purchase orders Cost Driver Quantity 800 400 1,800 The budgeted data for smartphone case production are as follows. $2.50 per unit $0.54 per unit 92 Direct materials Direct labor Number of setups Number of quality tests Number of purchase orders Production 400 50 15,000 units Calculate the activity rate for each cost pool. (Round answers to o decimal places, e.g. 5,275.) Machine setup / setup Inspection / test Materials receiving $ / PO
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