Rand Company computed the following activity rates using activity-based costing. Activity Rate Activity Setup Materials handling Inspection $ 55 per materials requisition $4 per unit inspected The company's deluxe model used the following activities to produce 1,000 units. $ 1,060 per setup Activity Setup Actual Activity Usage 3 setups 26 materials requisitions 1,000 units inspected Compute the overhead cost per unit for the deluxe model using activity-based costing. Materials handling Inspection

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Chapter1: Financial Statements And Business Decisions
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Rand Company computed the following activity rates using activity-based costing.
Activity Rate
Activity
Setup
Materials handling
Inspection
$ 55 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
$ 1,060 per setup
Activity
Setup
Materials handling
Inspection
1,000 units inspected
Compute the overhead cost per unit for the deluxe model using activity-based costing.
Total allocated cost
Units produced
Overhead cost per unit
Actual Activity Usage
3 setups
26 materials requisitions
Activity Usage
Activity Rato
Allocated Cost
Transcribed Image Text:s Rand Company computed the following activity rates using activity-based costing. Activity Rate Activity Setup Materials handling Inspection $ 55 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 $ 1,060 per setup Activity Setup Materials handling Inspection 1,000 units inspected Compute the overhead cost per unit for the deluxe model using activity-based costing. Total allocated cost Units produced Overhead cost per unit Actual Activity Usage 3 setups 26 materials requisitions Activity Usage Activity Rato Allocated Cost
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