Rand Company computed the following activity rates using activity-based costing. Activity Activity Rate Setup $ 1,000 per setup Materials handling $ 50 per materials requisition Inspection $ 2 per unit inspected The company’s deluxe model used the following activities to produce 1,000 units. Activity Actual Activity Usage Setup 3 setups Materials handling 25 materials requisitions Inspection 1,000 units inspected Compute the overhead cost per unit for the deluxe model using activity-based costing.
Rand Company computed the following activity rates using activity-based costing. Activity Activity Rate Setup $ 1,000 per setup Materials handling $ 50 per materials requisition Inspection $ 2 per unit inspected The company’s deluxe model used the following activities to produce 1,000 units. Activity Actual Activity Usage Setup 3 setups Materials handling 25 materials requisitions Inspection 1,000 units inspected Compute the overhead cost per unit for the deluxe model using activity-based costing.
Chapter1: Financial Statements And Business Decisions
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Rand Company computed the following activity rates using activity-based costing.
| Activity | Activity Rate | |
|---|---|---|
| Setup | $ 1,000 | per setup |
| Materials handling | $ 50 | per materials requisition |
| Inspection | $ 2 | per unit inspected |
The company’s deluxe model used the following activities to produce 1,000 units.
| Activity | Actual Activity Usage | |
|---|---|---|
| Setup | 3 | setups |
| Materials handling | 25 | materials requisitions |
| Inspection | 1,000 | units inspected |
Compute the
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