One of Dale Ltd's activity cost pools is machine set-ups, with estimated overhead of $300,000. Dale produces flares (400 set-ups) and health packs (600 set-ups). How much of the machine set-up cost pool should be assigned to flares?
A) $0.
B) $120,000.
C) $150,000.
D) $180,000.

Question

Quizplus · Accepted Answer

$120,000 of machine set ups should be assigned to flares (($300,000/1,000) x 400).

One of Dale Ltd's Activity Cost Pools Is Machine Set-Ups