03 Rand Company computed the following activity rates using activity-based costing. Activity Setup Materials handling Inspection Activity Rate $ 1,180 per setup $ 50 per materials requisition $ 4 per unit inspected The company's deluxe model used the following activities to produce 1,000 units. Activity Setup Materials handling Inspection Actual Activity Usage 3 setups 28 materials requisitions 1,000 units inspected Compute the overhead cost per unit for the deluxe model using activity-based costing. Activity Setup Materials handling Inspection Total allocated cost Units produced Overhead cost per unit Activity Usage Activity Rate Allocated Cost
03 Rand Company computed the following activity rates using activity-based costing. Activity Setup Materials handling Inspection Activity Rate $ 1,180 per setup $ 50 per materials requisition $ 4 per unit inspected The company's deluxe model used the following activities to produce 1,000 units. Activity Setup Materials handling Inspection Actual Activity Usage 3 setups 28 materials requisitions 1,000 units inspected Compute the overhead cost per unit for the deluxe model using activity-based costing. Activity Setup Materials handling Inspection Total allocated cost Units produced Overhead cost per unit Activity Usage Activity Rate Allocated Cost
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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![03
Rand Company computed the following activity rates using activity-based costing.
Activity
Setup
Materials handling
Inspection
Activity Rate
$ 1,180 per setup
$ 50 per materials requisition
$ 4 per unit inspected
The company's deluxe model used the following activities to produce 1,000 units.
Activity
Setup
Materials handling
Inspection
Actual Activity Usage
3 setups
28 materials requisitions
1,000 units inspected
Compute the overhead cost per unit for the deluxe model using activity-based costing.
Activity
Setup
Materials handling
Inspection
Total allocated cost
Units produced
Overhead cost per unit
Activity Usage
Activity Rate
Allocated Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05cee992-ca58-40df-a52a-a9b58e87bdcf%2F70b601a5-644b-4b59-ae65-a9c925515afb%2F4rmtoud_processed.jpeg&w=3840&q=75)
Transcribed Image Text:03
Rand Company computed the following activity rates using activity-based costing.
Activity
Setup
Materials handling
Inspection
Activity Rate
$ 1,180 per setup
$ 50 per materials requisition
$ 4 per unit inspected
The company's deluxe model used the following activities to produce 1,000 units.
Activity
Setup
Materials handling
Inspection
Actual Activity Usage
3 setups
28 materials requisitions
1,000 units inspected
Compute the overhead cost per unit for the deluxe model using activity-based costing.
Activity
Setup
Materials handling
Inspection
Total allocated cost
Units produced
Overhead cost per unit
Activity Usage
Activity Rate
Allocated Cost
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