Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: The activity rate for the batch setup activity cost pool is closest to:
A) $66.60
B) $106.60
C) $97.00
D) $177.60

Question

Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:   The activity rate for the batch setup activity cost pool is closest to:
A) $66.60 
B) $106.60 
C) $97.00 
D) $177.60

Quizplus · Accepted Answer

Activity rate = Total cost ÷ Total activity = $532,800 ÷ 8,000 setups = $66.60 per setup

Angara Corporation Uses Activity-Based Costing to Determine Product Costs for External