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Bramble Industries manufactures several products including a basic case for a popular smartphone. The company is...

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 Activity Overhead $ Cost Driver Cost Driver
Quantity
Machine setup $ 231,140 # of setups 910
Inspection 120,870 # of quality tests 395
Materials receiving 299,700 # of purchase orders 2,025



The budgeted data for smartphone case production are as follows.

Direct materials $3.00 per unit
Direct labor $0.44 per unit
Number of setups 101
Number of quality tests 455
Number of purchase orders 45
Production 15,000 units

Calculate the activity rate for each cost pool. (Round answers to 0 decimal places, e.g. 5,275.)

Machine setup $ / setup
Inspection $ / test
Materials receiving $ / PO

Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, e.g. 15.25.)

Activity-based unit cost $

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ekkarill92 answered 3 years ago
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