Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools?
A) $300 per change, $80 per setup, $2.50 per inspection
B) $250 per change, $80 per setup, $3.75 per inspection
C) $210 per change, $2.50 per setup, $26.25 per inspection
D) $300 per change, $125 per setup, $4.00 per inspection

Question

Quizplus · Accepted Answer

Activity-cost driver rates are calculated by dividing the total cost of each activity by the total number of activities. The correct rates for design changes, setups, and inspections are $300 per change, $80 per setup, and $2.50 per inspection, which matches option A.

Assuming Activity-Cost Pools Are Used, What Are the Activity-Cost Driver