Alexander Inc.uses activity-based costing.The company produces two products: Snaps and Pops.The expected annual production of Snaps is 1,500 units,while the expected annual production of Pops is 2,200 units.There are three activity cost pools: Assembly,Testing,and Packing.The estimated costs and activities for each of these three activity pools follows:
The cost pool activity rate for Testing would be
A)$21.43 per activity.
B)$13.90 per activity.
C)$39.56 per activity.
D)$6.95 per activity.

Question

Alexander Inc.uses activity-based costing.The company produces two products: Snaps and Pops.The expected annual production of Snaps is 1,500 units,while the expected annual production of Pops is 2,200 units.There are three activity cost pools: Assembly,Testing,and Packing.The estimated costs and activities for each of these three activity pools follows: 
The cost pool activity rate for Testing would be
A)$21.43 per activity. 
B)$13.90 per activity. 
C)$39.56 per activity. 
D)$6.95 per activity.

Quizplus · Accepted Answer

B)$25,715 / 1850 = 13.90