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QS 17-10(Algo) Computing activity rates for activity-based costing LO P3 A company sells...

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Accounting

QS 17-10(Algo) Computing activity rates for activity-based costing LO P3
A company sells two types of products: standard and deluxe. It prepares the following analysis showing budgeted cost and cost c activity for each of its three activities.
\table[[Activity,Budgeted Cost,Activity Cost Driver,Budgeted Activity Usage],[Standard,Deluxe,Total],[Factory services,$145,000,Square feet,3,000,2,800,5,800],[Setup,$15,000,Setups,300,200,500],[Quality control,$170,500,Units inspected,2,500,5,250,7,750]]
Compute an activity rate for each activity using activity-based costing.
\table[[Activity,Budgeted Cost,Budgeted Activity Usage,Activity Rate],[Factory services,$,,,],[Setup,145,000,,,],[Quality control,15,000,,,]]
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