RedRock Manufacturing uses an activity-based costing system. The following data relates to one of its activity cost pools: ⚫ Activity Cost Pool: Machine Setup ⚫ Estimated Overhead Costs: $126,000 ⚫ Estimated Activity (Number of Setups): 180 setups Calculate the activity rate for the Machine Setup cost pool.

RedRock Manufacturing uses an activity-based costing system. The following data relates to one of its activity cost pools: ⚫ Activity Cost Pool: Machine Setup ⚫ Estimated Overhead Costs: $126,000 ⚫ Estimated Activity (Number of Setups): 180 setups Calculate the activity rate for the Machine Setup cost pool.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 8EA: Rex Industries has identified three different activities as cost drivers: machine setups, machine...

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Rocks Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity.
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what is the activity rate for this cost pool?
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product Z1 Product Z8 Total DLHS $112,190 40,440 609,770 600 2,000 Machine setups Оrder size 2,600 1,200 6, 200 setups 500 700 MHs 3,000 3,200 $762,400 The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to: Multiple Cholce $203.26 per setup $190.55 per setup $122.97 per setup 92 F AQI 61 nere to search DELL
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Calculate Miller's activity rate for each cost pool.