A company sells two types of products: standard and deluxe. It prepares the following analysis...
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Accounting
A company sells two types of products: standard and deluxe. It prepares the following analysis showing budgeted cost and cost driver activity for each of its three activities. Activity Budgeted Cont Activity Cost Driver Factory services $ 87,000 Square feet Setup 10,000 Setups Quality control 93,000 Unito inspected Compute an activity rate for each activity using activity-based costing Budgeted Activity Usage Standard Deluxe Total 3,000 2,800 5,800 300 200 500 2,500 5,250 7,750 Activity Factory services Setup Quality control Budgeted Cost $ 87,000 10,000 93,000 Budgeted Activity Usage square feet setups units inspected Activity Rate per square foot per setup per unit inspected
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