Asked by Giovanni Magana on Jun 25, 2024
Verified
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
A) $65.34 per setup
B) $53.07 per setup
C) $72.34 per setup
D) $15.39 per setup
Activity Rate
The cost driver rate that is used in activity-based costing to allocate overhead costs to products or services.
Activity Cost Pool
A grouping of all costs related to a specific activity or process in a company, used in activity-based costing.
Activity-Based Costing
A costing method that assigns costs to products based on the activities that go into making them, providing a more detailed measure of costs.
- Compute activity rates for different cost pools utilizing activity-based costing methodology.
Verified Answer
= $18,468 ÷ 1,200 setups = $15.39 per setup
Learning Objectives
- Compute activity rates for different cost pools utilizing activity-based costing methodology.
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