Andruschack 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)$33.90
B)$74.50
C)$84.80
D)$56.50

Question

Andruschack 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)$33.90 
B)$74.50 
C)$84.80 
D)$56.50

Quizplus · Accepted Answer

Activity rate = Total cost ÷ Total activity = $339, 000 ÷ 10, 000 setups = $33.90 per setup

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