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)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter4: Activity-based Costing
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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
  •  
    $11,825
  •  
    $12,000
  •  
    $320
  •  
    $350
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