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A company manufactures elliptical machines and treadmills. Activity cost pools and activity rates follow. Activity Assembly Quality control Activity Rate $ 15 per direct labor hour $10 per inspection Activity usage for treadmills follows. Compute the overhead cost per unit for treadmills. The company made 100 treadmills. Activity Usage Treadmills 390 90 Cost Driver Direct labor hours Inspections

A company manufactures elliptical machines and treadmills. Activity cost pools and activity rates follow. Activity Assembly Quality control Activity Rate $ 15 per direct labor hour $10 per inspection Activity usage for treadmills follows. Compute the overhead cost per unit for treadmills. The company made 100 treadmills. Activity Usage Treadmills 390 90 Cost Driver Direct labor hours Inspections

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company manufactures elliptical machines and treadmills. Activity cost pools and activity rates follow. Activity Activity Rate Assembly Quality control $15 per direct labor hour $10 per inspection Activity usage for treadmills follows. Compute the overhead cost per unit for treadmills. The company made 100 treadmills. Activity Usage Treadmills Cost Driver Direct labor hours. Inspections 390 90 Note: Round Overhead per unit to two decimal places.. Overhead cost per unit-Treadmills Activity Cost Pool Assembly Quality control Total Units produced Overhead per unit Activity Usage Activity Rate Allocated Cost
Transcribed Image Text:A company manufactures elliptical machines and treadmills. Activity cost pools and activity rates follow. Activity Activity Rate Assembly Quality control $15 per direct labor hour $10 per inspection Activity usage for treadmills follows. Compute the overhead cost per unit for treadmills. The company made 100 treadmills. Activity Usage Treadmills Cost Driver Direct labor hours. Inspections 390 90 Note: Round Overhead per unit to two decimal places.. Overhead cost per unit-Treadmills Activity Cost Pool Assembly Quality control Total Units produced Overhead per unit Activity Usage Activity Rate Allocated Cost
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