Question: Wilson Industries manufactures a unique water filtration nozzle. The budgeted indirect total cost of assembling the nozzle is $120,000. The budgeted number of nozzles to be assembled is 40,000. What is the budgeted indirect cost allocation rate for this activity? a. $3.50 b. $3.00 c. $2.50 d. $4.00

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 7CE: Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced...
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What is the budgeted indirect cost allocation rate for this activity?

Question:
Wilson Industries manufactures a unique water
filtration nozzle. The budgeted indirect total cost of
assembling the nozzle is $120,000. The budgeted
number of nozzles to be assembled is 40,000. What is
the budgeted indirect cost allocation rate for this
activity?
a. $3.50
b. $3.00
c. $2.50
d. $4.00
Transcribed Image Text:Question: Wilson Industries manufactures a unique water filtration nozzle. The budgeted indirect total cost of assembling the nozzle is $120,000. The budgeted number of nozzles to be assembled is 40,000. What is the budgeted indirect cost allocation rate for this activity? a. $3.50 b. $3.00 c. $2.50 d. $4.00
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