Use the information below to answer the following question(s):
Jason Corporation uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,000 units, while the expected annual production of Pops is 3,000 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows:
-The cost pool activity rate for Testing would be
A) $12.40 per activity.
B) $20.29 per activity.
C) $31.89 per activity.
D) $5.58 per activity.

Question

Use the information below to answer the following question(s):
Jason Corporation uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,000 units, while the expected annual production of Pops is 3,000 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows: 
-The cost pool activity rate for Testing would be
A) $12.40 per activity. 
B) $20.29 per activity. 
C) $31.89 per activity. 
D) $5.58 per activity.

Quizplus · Accepted Answer

A) $22,230/1800 = 12.40

Use the Information Below to Answer the Following Question(s)