A company has two products: standard and deluxe. The company expects to produce 36,375 standard...
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Accounting
A company has two products: standard and deluxe. The company expects to produce 36,375 standard units and 62,240 deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Budgeted Activity of Cost Driver Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost Standard Deluxe 5,250 5,500 $93,000 $92,000 $87,000 2,500 4,500 3,000 Required: What is the overhead cost per unit for the standard units? What is the overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.) Activity Expected CostsActivity Driver ExpectedActivity Rate Activity Driver Activity Rate 93,000 92,000 87,000 Standard Activity Activity Driver Activity Rate Allocated Cost 2
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