Please answer in text form A company has two products: standard and deluxe. The company expects to produce 36,375 standard units and 52,240 deluxe unitsIt uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of tthree activity cost pools.Activity Cost PoolActivity 1Activity 2Activity 3Activity Expected Costs Activity DriverExpected$93,0007,750 $92,00037,000123Budgeted Cost$93,000$92,000$87,000Required:1. Compute overhead rates for each of the three activities2. 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.)ere to search310,000 $5,800 $Budgeted Activity ofCost DriverActivity Rate0StandardActivity Activity Driver Activity Rate Allocated CostStandard2,5004,5003,000W12.009.2015.00Deluxe5,2505,5002,800GPrev1 of 1a∞Next >E1999

Given in the question:Budgeted units produced of Standard Units = 36,375 UnitsBudgeted units…

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)

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Please answer in text form

A company has two products: standard and deluxe. The company expects to produce 36,375 standard units and 52,240 deluxe units
It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of t
three activity cost pools.
Activity Cost Pool
Activity 1
Activity 2
Activity 3
Activity Expected Costs Activity Driver
Expected
$
93,000
7,750 $
92,000
37,000
1
2
3
Budgeted Cost
$93,000
$92,000
$87,000
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.)
ere to search
3
10,000 $
5,800 $
Budgeted Activity of
Cost Driver
Activity Rate
0
Standard
Activity Activity Driver Activity Rate Allocated Cost
Standard
2,500
4,500
3,000
W
12.00
9.20
15.00
Deluxe
5,250
5,500
2,800
G
Prev
1 of 1
a
∞
Next >
E
1999

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