Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
nitnit nitnit
wrote...
Go to Answer
Posts: 152
Rep: 0 0
A year ago
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.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 58 times
1 Reply
Replies
Answer verified by a subject expert
nguyenphuc1990nguyenphuc1990
wrote...
#1
Posts: 155
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

nitnit Author
wrote...

A year ago
Thanks
Shassta22
wrote...

Yesterday
Helped a lot
emilyas19
wrote...

2 hours ago
Smart ... Thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1169 People Browsing
 124 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 112
  
 48
  
 262
Your Opinion
How often do you eat-out per week?
Votes: 79
Previous poll results: Where do you get your textbooks?