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

Sheridan 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 $ 200,540 # of setups 740
Inspection 138,720 # of quality tests 480
Materials receiving 203,200 # of purchase orders 1,600


The budgeted data for smartphone case production are as follows.
Direct materials $2.10 per unit
Direct labor $0.61 per unit
Number of setups 84
Number of quality tests 370
Number of purchase orders 50
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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