Assume that activity cost totals $180,000.The company produced an average of 40 units per batch and the number of batches produced is 9,000.Calculate the activity rate.
A)$20 per batch
B)$4,500 per batch
C)225 per batch
D).005 per batch

Question

Quizplus · Accepted Answer

The activity rate is calculated by dividing the total activity cost by the number of batches. $180,000 / 9,000 batches = $20 per batch.

Assume That Activity Cost Totals $180,000