Winner Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $100,000. The budgeted number of nozzles to be inserted is 50,000. What is the budgeted indirect cost allocation rate for this activity? a. $2.50 b. $2.00 c. $3.00 d. $4.00

Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
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Winner Company produces a special spray nozzle. The budgeted indirect
total cost of inserting the spray nozzle is $100,000. The budgeted number
of nozzles to be inserted is 50,000. What is the budgeted indirect cost
allocation rate for this activity?
a. $2.50
b. $2.00
c. $3.00
d. $4.00
Transcribed Image Text:Winner Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $100,000. The budgeted number of nozzles to be inserted is 50,000. What is the budgeted indirect cost allocation rate for this activity? a. $2.50 b. $2.00 c. $3.00 d. $4.00
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