Business, 06.06.2020 21:00 dmaxbexkham
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. Cost Driver Activity Activity Overhead $ Cost Driver Quantity Machine setup $200,000 # of setups 800 Inspection 120,000 #of quality tests 400 Materials receiving 252,000 # of purchase orders 1,800 The budgeted data for smartphone case production are as follows Direct materials $2.50 per unit Direct labor $0.54 per unit Number of setups 92 Number of quality tests 400 Number of purchase orders 50 Production 15,000 units Calculate the activity rate for each cost pool. (Round answers to 0 decimal places, e. g. 5,275.) Machine setup $ /setup Inspection $ /test Materials receiving $ /PO Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, e. g. 15.25.) Activity-based unit cost $
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