Solution-Compute overhead cost per unit using

Compute overhead cost per unit using activity-based costing

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Reference no: EM133111468

Question - Lucern Company reports the following for its overhead costs for the year.

Activity	Budgeted Cost	Budgeted Activity Driver
Engineering support	$28,500	75 design changes
Electricity	41,160	3,430 machine hours
Setup	60,800	380 setups

Required -

1. Compute the activity rate for each activity cost pool using activity-based costing.

2. The company's Pro model used these activities to produce 1,000 units during the year: 3 design changes, 120 machine hours, and 14 setups. Allocate overhead costs to the Pro model and compute overhead cost per unit using activity-based costing.

Reference no: EM133111468

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Compute overhead cost per unit using activity-based costing

Reference no: EM133111468

Reference no: EM133111468

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