Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly...
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Accounting
Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 17 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $110,000. In an attempt to more equitably distribute quality-control costs, management is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen makeup. Activity Cost Pool Cost Driver Pool Rates Quantity of Driver for Satin Sheen Incoming material inspection Type of material $ 23.00 per type 25 types In-process inspection Number of units 0.29 per unit 45,000 units Product certificatio
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