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our Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:                 Estimated Expected Activity       Activity Cost Pool  Cost Product A Product B Total       Machine related          $17,600 700 300 1,000 MH   Batch setup     $32,600 600 200 800 Setups   Other   $52,500 900 500 1,400 DLH                                         What is the activity rate under the activity-based costing system for Batch setups? Group of answer choices $54.33 $40.75 $40.75 per Setup $16.30 $16.30 per Setup $54.33 per Setup

our Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:                 Estimated Expected Activity       Activity Cost Pool  Cost Product A Product B Total       Machine related          $17,600 700 300 1,000 MH   Batch setup     $32,600 600 200 800 Setups   Other   $52,500 900 500 1,400 DLH                                         What is the activity rate under the activity-based costing system for Batch setups? Group of answer choices $54.33 $40.75 $40.75 per Setup $16.30 $16.30 per Setup $54.33 per Setup

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Your Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:
           

 

 

Estimated

Expected Activity

 

 

 

Activity Cost Pool

 Cost

Product A

Product B

Total

 

 

 

Machine related         

$17,600

700

300

1,000

MH

 

Batch setup    

$32,600

600

200

800

Setups

 

Other  

$52,500

900

500

1,400

DLH
                         


 
            What is the activity rate under the activity-based costing system for Batch setups?

Group of answer choices

$54.33

$40.75

$40.75 per Setup

$16.30

$16.30 per Setup

$54.33 per Setup

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