Austad Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
-The activity rate for the batch setup activity cost pool is closest to:
A)$91.20
B)$68.40
C)$77.90
D)$39.10

Question

Austad Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:  
-The activity rate for the batch setup activity cost pool is closest to:
A)$91.20 
B)$68.40 
C)$77.90 
D)$39.10

Quizplus · Accepted Answer

Activity rate = Total cost F1F1F1S1F1F1F10 Total activity = $273,700 F1F1F1S1F1F1F10 7,000 setups = $39.10 per unit

Austad Corporation Uses Activity-Based Costing to Determine Product Costs for External