The activity rate for the Processing activity cost pool under activity-based costing is closest to:
A)$2.50 per MH
B)$2.00 per MH
C)$7.00 per MH
D)$1.95 per MH

Name: The activity rate for the Processing activity cost pool under activity-based costing is closest to: A)$2.50 per MH B)$2.00 per MH C)$7.00 per MH D)$1.95 per MH
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Question

Quizplus · Accepted Answer

The activity rate is calculated by dividing the total cost of the activity by the total activity driver units. Based on the given options, $2.00 per MH is the closest rate.

The Activity Rate for the Processing Activity Cost Pool Under