Gaucher Corporation has provided the following data from its activity-based costing accounting system: The activity rate for the "designing products" activity cost pool is closest to:
A)$78 per product design hour
B)$582,016 per product design hour
C)$128 per product design hour
D)$89 per product design hour

Question

Gaucher Corporation has provided the following data from its activity-based costing accounting system:  The activity rate for the "designing products" activity cost pool is closest to:
A)$78 per product design hour 
B)$582,016 per product design hour 
C)$128 per product design hour 
D)$89 per product design hour

Quizplus · Accepted Answer

To calculate the activity rate for "designing products," we divide the total cost for the activity pool ($230,400) by the total activity for the pool (1,800 product design hours). This gives us an activity rate of $128 per product design hour. Therefore, the closest answer choice is C.

Gaucher Corporation Has Provided the Following Data from Its Activity-Based