Assume that activity cost totals $150,000. The company produced an average of 50 units per batch and the number of batches produced is 12,000. Calculate the activity rate. a. $10 per batch b. $12.5 per batch c. $15 per batch d. $20 per batch

Assume that activity cost totals $150,000. The company produced an average of 50 units per batch and the number of batches produced is 12,000. Calculate the activity rate. a. $10 per batch b. $12.5 per batch c. $15 per batch d. $20 per batch

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 28E: Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are...

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Question

100%

Calculate the activity rate.

Assume that activity cost totals $150,000. The
company produced an average of 50 units per
batch and the number of batches produced is
12,000. Calculate the activity rate.
a. $10 per batch
b. $12.5 per batch
c. $15 per batch
d. $20 per batch

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