The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
A)$65.34 per setup
B)$53.07 per setup
C)$72.34 per setup
D)$15.39 per setup

Name: The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to: A)$65.34 per setup B)$53.07 per setup C)$72.34 per setup D)$15.39 per setup
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $18,468 ÷ 1,200 setups = $15.39 per setup

The Activity Rate for the Machine Setups Activity Cost Pool