Assume that company makes only two products: Product A and Product B. The company’s activity-based costing system has allocated $144,000 to an activity called machine setups. It is considering allocating the machine setups cost to its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures: Product A Product B Number of machine setups 30 45 Number of setup hours per setup 6 6 If the company uses number of setup hours as the activity measure, what is the activity rate for machine setups? rev: 10_30_2021_QC_CS-283805 Garrison 17e Rechecks 2021-11-13 Multiple Choice $11,825 $12,000 $320 $350
Assume that company makes only two products: Product A and Product B. The company’s activity-based costing system has allocated $144,000 to an activity called machine setups. It is considering allocating the machine setups cost to its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures: Product A Product B Number of machine setups 30 45 Number of setup hours per setup 6 6 If the company uses number of setup hours as the activity measure, what is the activity rate for machine setups? rev: 10_30_2021_QC_CS-283805 Garrison 17e Rechecks 2021-11-13 Multiple Choice $11,825 $12,000 $320 $350
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 9CE: Patterson Company produces wafers for integrated circuits. Data for the most recent year are...
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Assume that company makes only two products: Product A and Product B. The company’s activity-based costing system has allocated $144,000 to an activity called machine setups. It is considering allocating the machine setups cost to its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures:
Product A | Product B | |
---|---|---|
Number of machine setups | 30 | 45 |
Number of setup hours per setup | 6 | 6 |
If the company uses number of setup hours as the activity measure, what is the activity rate for machine setups?
rev: 10_30_2021_QC_CS-283805
Garrison 17e Rechecks 2021-11-13
Multiple Choice
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