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Other Fields Homework Help Accounting Topic started by: nitnit on Jan 29, 2023



Title: Megan Industries manufactures several products including a basic case for a popular smart phone. The ...
Post by: nitnit on Jan 29, 2023
Megan Industries manufactures several products including a basic case for a popular smart phone. The company is considering adopting an activity-based costing approach to set its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows.

ActivityActivity Overhead CostCost DriverCost Driver Quantity
Machine setup$192,000# of setups   800
Inspection   175,000# of quality tests   500
Materials receiving   198,000# of purchase orders1,800
The budgeted data for smart phone case production are as follows.

Direct materials$2.60 per unit
Direct labor$0.59 per unit
Number of setups90
Number of quality tests400
Number of purchase orders60
Production20,000 units
Required:

a.Calculate the activity rate for each cost pool.
b.Calculate the activity-based unit cost of the smart phone case.


Title: Megan Industries manufactures several products including a basic case for a popular smart phone. The ...
Post by: nguyenphuc1990 on Jan 29, 2023
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