Angara 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)$66.60 per setup
B)$106.60 per setup
C)$97.00 per setup
D)$177.60 per setup

Question

Angara 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)$66.60 per setup 
B)$106.60 per setup 
C)$97.00 per setup 
D)$177.60 per setup

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Expected activity = $532,800 ÷ 8,000 setups = $66.60 per setup

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