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Xavier Company produces televisions. One of its plants produces two versions of televisions: a basic model and a premium model. At the beginning of the
Xavier Company produces televisions. One of its plants produces two versions of televisions: a basic model and a premium model. At the beginning of
the year, the following data were prepared for the plant:
Additionally, the following overhead activity costs are reported:
Xavier uses activitybased costing to calculate product cost.
Required:
If required, round your answers to the nearest cent. Use rounded amounts in subsequent computations. A What is the activity rate for maintaining equipment based on maintenance hours?
B What is the activity rate for setting up equipment based on number of setups?
C What is the activity rate for purchasing materials based on number of requisitions?
D What is the unit cost of the basic model?
E What is the unit cost of the premium model?
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