Megan Industries manufactures several products including a basic case for a popular smart phone. The...
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Megan Industries manufactures several products including a basic case for a popular smart phone. The company is considering adopting an activity-based costing approach for setting its budget. The companys production activities, budgeted activity costs, and cost drivers for the coming year are as follows.
Materials receiving 216,960 # of purchase orders 1,920
The budgeted data for smart phone case production are as follows. Direct materials $2.80 per unit Direct labor $0.54 per unit Number of setups 96 Number of quality tests 425 Number of purchase orders 59 Production 21,530 units
Calculate the activity-based unit cost of the smart phone case.
Activity-based unit cost=???
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