Wieters Industries manufactures several products including a basic case for a popular smartphone. The company...
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Wieters 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. Cost Driver Quantity 2,500 Cost Driver Activity Machine setup Inspection Materials receiving Activity Overhead $ $ 200,000 160,000 # of setups # of quality tests # of purchase orders 400 252,000 3,000 The budgeted data for smartphone case production are as follows. $1.25 per unit $0.80 per unit 260 Direct materials Direct labor Number of setups Number of quality tests Number of purchase orders Production 75 50 250,000 units $0.80 per unit 260 Direct labor Number of setups Number of quality tests Number of purchase orders Production 75 50 250,000 units (a) Calculate the activity rate for each cost pool. $ Machine setup / setup $ / test Inspection $ /PO Materials receiving e Textbook and Media Save for Later Attempts: unlimited Submit
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