A company selts two types of products: standard and deluxe. It prepares the following analysis showing budgeted cost and cost driver activity for each of its three activities Budgeted Activity Usage Deluxe 2,800 200 Total 5,800 Activity Factory services Setup Quality control Budgeted Cost $ 104, 400 $ 11,500 5 116,250 Activity Cost Driver Square feet Setups Units Inspected Standard 3,000 300 2, 500 500 5,250 7,750 Compute an activityrate for each activity using activity-based costing. Activity Budgeted Cost Budgeted Activity Usage Activity Rate 104 400 Factory services Setup 11.500 Quality control 116,250

A company selts two types of products: standard and deluxe. It prepares the following analysis showing budgeted cost and cost driver activity for each of its three activities Budgeted Activity Usage Deluxe 2,800 200 Total 5,800 Activity Factory services Setup Quality control Budgeted Cost $ 104, 400 $ 11,500 5 116,250 Activity Cost Driver Square feet Setups Units Inspected Standard 3,000 300 2, 500 500 5,250 7,750 Compute an activityrate for each activity using activity-based costing. Activity Budgeted Cost Budgeted Activity Usage Activity Rate 104 400 Factory services Setup 11.500 Quality control 116,250

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...

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