Figure 4-22 Isidora's Clinic is considering a time-driven activity based costing system.Given the following data:

-Refer to Figure 4-22.What is the capacity cost rate?
A) $35
B) $25
C) $4
D) $105

Question

Figure 4-22 Isidora's Clinic is considering a time-driven activity based costing system.Given the following data:
 
-Refer to Figure 4-22.What is the capacity cost rate?
A) $35 
B) $25 
C) $4 
D) $105

Quizplus · Accepted Answer

Capacity cost rate is the total capacity cost divided by the total capacity. In this case, the total capacity cost is $105 and the total capacity is 3 units. Therefore, the capacity cost rate is $105 / 3 = $35.

Figure 4-22 Isidora's Clinic Is Considering a Time-Driven Activity Based