What is the allocation rate for Machine Set-ups using Activity Based Costing
A)$6.30
B)$72.00
C)$28.00
D)$84.00

Question

Quizplus · Accepted Answer

The allocation rate for Machine Set-ups using Activity Based Costing is calculated by dividing the total cost of machine set-ups by the total number of set-ups. From the given information, the total cost of machine set-ups is $56,000 and the total number of set-ups is 2,000. Therefore, the allocation rate would be $28.00 per set-up. Option C is the correct answer.

What Is the Allocation Rate for Machine Set-Ups Using Activity