Asked by Bilan Osman on Jun 23, 2024
Verified
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
A) $156.56 per setup
B) $199.06 per setup
C) $189.58 per setup
D) $36.95 per setup
Activity Rate
The predetermined overhead rate used in activity-based costing to assign overhead costs to products or services based on a specific activity.
Machine Setups
The process and associated costs of configuring machinery to produce a specific product or batch of products.
Activity Cost Pool
A compilation of all the costs related to a specific activity or process in cost accounting.
- Assess the activity rates for cost pools as part of an ABC system.
Verified Answer
= $25,865 ÷ 700 setups = $36.95 per setup
Learning Objectives
- Assess the activity rates for cost pools as part of an ABC system.
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