
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:2. Calculate the unit costs using activity rates. Round your answers to the nearest cent.
Basic
Advanced
Basic
Calculate the overhead cost per unit. Round your answers to the nearest cent.
Overhead Cost
Advanced
Unit cost
per unit
per unit
Basic
Advanced
per unit
per unit.
3. If consumption ratios instead of activity rates were used to assign costs instead of activity rates, show the cost assignment for the inspection activity.
Cost assignment

Transcribed Image Text:Activity-Based Product Costing
Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on
these activities and their drivers is given below.
Basic
Units produced
Prime costs
Machine hours
Engineering hours
Receiving orders
Inspection hours
Overhead costs:
Machining
Engineering
Receiving
Inspecting products
130,000
$10,140,000
130,000
500
300
600
$9,360,000
2,900,000
456,000
360,000
Advanced
390,000
$46,800,000
650,000
4,500
900
1,200
Total
$56,940,000
780,000
5,000
1,200
1,800
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