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?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...
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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?

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