Bramble Industries manufactures several products including a basic case for a popular smartphone. The company...
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Bramble Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows. Activity Cost Driver Cost Driver Quantity Activity Overhead $ $ 148,200 Machine setup # of setups 1,900 Inspection 129,200 380 # of quality tests # of purchase orders Materials receiving 232,400 2.800 The budgeted data for smartphone case production are as follows. Direct materials $ 2.30 per unit Direct labor $ 0.57 per unit 190 390 Number of setups Number of quality tests Number of purchase orders Production 70 278,600 units (a) Calculate the activity rate for each cost pool. $ / setup Machine setup $ $ /test Inspection $ / PO Materials receiving
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