Process Activity Analysis
Prawitt Company incurred an activity cost of $118,000 for inspecting 50,000 units of production. Management determined that the inspecting objectives could be met without
inspecting every unit. Therefore, rather than inspecting 50,000 units of production, the inspection activity was limited to a random selection of 5,000 units out of the 50,000 units of
production.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
X
Open spreadsheet
Determine the inspection activity cost per unit on 50,000 units of total production both before and after the improvement. Do not round intermediate calculations. If required,
round per unit amounts to the nearest cent.
Inspection activity before improvement:$
per unit
Inspection activity after improvement $
per unit
