Jason Corporation uses activity-based costing.The company produces two products: Snaps and Pops.The expected annual production of Snaps is 1,000 units,while the expected annual production of Pops is 3,000 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)$12.40 per activity.
B)$20.29 per activity.
C)$31.89 per activity.
D)$5.58 per activity.

Question

Jason Corporation uses activity-based costing.The company produces two products: Snaps and Pops.The expected annual production of Snaps is 1,000 units,while the expected annual production of Pops is 3,000 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

The cost pool activity rate for Testing would be
A)$12.40 per activity. 
B)$20.29 per activity. 
C)$31.89 per activity. 
D)$5.58 per activity.

Quizplus · Accepted Answer

The Answer of Jason Corporation uses activity-based costing.The company produces two products: Snaps and Pops.The expected annual production of Snaps is 1,000 units,while the expected annual production of Pops is 3,000 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)$12.40 per activity. 
B)$20.29 per activity. 
C)$31.89 per activity. 
D)$5.58 per activity.

Jason Corporation Uses Activity-Based Costing