A Company Has Two Products Standard And Deluxe The Company Expects To Produce 39 375 Standard Units And 65 240 Deluxe 1 (24.11 KiB) Viewed 8 times
A Company Has Two Products Standard And Deluxe The Company Expects To Produce 39 375 Standard Units And 65 240 Deluxe 2 (58.29 KiB) Viewed 8 times
A company has two products: standard and deluxe. The company expects to produce 39,375 standard units and 65,240 deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost $116,250 $122,000 $104,400 Budgeted Activity of Cost Driver Standard 2,500 4,500 3,000 Deluxe 5,250 5,500 2,800 Required: 1. Compute overhead rates for each of the three activities. 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.)
Required: 1. Compute overhead rates for each of the three activities. 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.) Activity Expected Costs 23 1 S 2 Standard Activity 1 3 32 Deluxe Activity 1 2 116,250 122,000 104,400 Activity Driver Activity Driver Expected Activity Driver 2,500 4,500 3,000 Activity Rate Activity Rate Activity Rate Allocated Cost Allocated Cost 0
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