Roen Company incurred an activity cost of $105,600 for inspecting 40,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 40,000 units of production, the inspection activity was limited to a random selection of 5,000 units out of the 40,000 units of production. Determine the inspection activity cost per unit on 40,000 units of total production both before and after the improvement. If required, round per unit amounts to the nearest cent. Inspection activity before improvement ? per unit Inspection activity after improvement ? per unit

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Process Activity Analysis

Roen Company incurred an activity cost of $105,600 for inspecting 40,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 40,000 units of production, the inspection activity was limited to a random selection of 5,000 units out of the 40,000 units of production.

Determine the inspection activity cost per unit on 40,000 units of total production both before and after the improvement. If required, round per unit amounts to the nearest cent.

Inspection activity before improvement ? per unit
Inspection activity after improvement ? per unit
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