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Orlando Avionics makes three types of radios for small aircraft-model A, model B, and model C. The manufacturing operations are mechanized and there is no direct labor. Manufacturing overhead costs are significant, and Orlando has adopted an activity-based costing system. Direct materials costs per unit for each model are as follows: Orlando has three activities-assembly, materials management, and testing. The cost driver for assembly is machine hours. The cost driver for materials management is number of parts, and the cost driver for testing is the number of units of product. Total costs and production volumes for the year 2012 were estimated as follows:
What is the allocation rate for the testing activity? (Please round to the nearest cent.)
Shares
Units of ownership in a company, typically traded on a stock exchange, representing a portion of the corporate equity.
Treasury Stock
Shares that were issued and later reacquired by the issuing company.
Par Common Stock
The nominal or face value of common stock as stated in the corporate charter, which is the minimum amount that must be paid by investors for each share.
Preferred Stock
A type of stock that provides dividends before common stockholders and has priority over common stock in the event of liquidation.
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