A manufacturing company incurred total activity costs of $350,000. The company produced 7,000 batches with an average of 25 units per batch. What is the activity rate? a. $2 per batch b. $50 per batch c. $500 per batch d. $14,000 per batch

A manufacturing company incurred total activity costs of $350,000. The company produced 7,000 batches with an average of 25 units per batch. What is the activity rate? a. $2 per batch b. $50 per batch c. $500 per batch d. $14,000 per batch

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2EB: Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine...

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Question

I need help solving this general accounting question with the proper methodology.

A manufacturing company incurred total activity costs of $350,000. The
company produced 7,000 batches with an average of 25 units per batch.
What is the activity rate?
a. $2 per batch
b. $50 per batch
c. $500 per batch
d. $14,000 per batch

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