The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
A)$203.26 per setup
B)$190.55 per setup
C)$122.97 per setup
D)$33.70 per setup

Name: The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to: A)$203.26 per setup B)$190.55 per setup C)$122.97 per setup D)$33.70 per setup
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $40,440 ÷ 1,200 setups = $33.70 per setup

The Activity Rate for the Machine Setups Activity Cost Pool