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Lexter Company incurred an activity cost of $180,000 for inspecting 25,000 units of production. Management...

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Accounting

Lexter Company incurred an activity cost of $180,000 for inspecting 25,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 25,000 units of production, the inspection activity was limited to 40% of the production. Determine the inspection activity cost per unit on 25,000 units of total production both before and after the improvement.

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