Assume that activity cost totals $180,000. The company produced an average of 40 units per batch and the number of batches produced is 9,000. Calculate the activity rate. a. $20 per batch b. $4,500 per batch c. 225 per batch d. .005 per batch

Assume that activity cost totals $180,000. The company produced an average of 40 units per batch and the number of batches produced is 9,000. Calculate the activity rate. a. $20 per batch b. $4,500 per batch c. 225 per batch d. .005 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

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Calculate the activity rate on these accounting question

Assume that activity cost totals $180,000. The company produced an average
of 40 units per batch and the number of batches produced is 9,000. Calculate
the activity rate.
a. $20 per batch
b. $4,500 per batch
c. 225 per batch
d. .005 per batch

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