The packaging activity has an expected cost of $90,000. Expected number of packages is 45,000, and expected labor hours are 15,000. The best activity rate per package is A) $2.00 B) $1.50 C) $3.00 D) $6.00 E) none of the above

The packaging activity has an expected cost of $90,000. Expected number of packages is 45,000, and expected labor hours are 15,000. The best activity rate per package is A) $2.00 B) $1.50 C) $3.00 D) $6.00 E) none of the above

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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I am looking for the correct answer to this general accounting question with appropriate explanations.

The packaging activity has an expected cost of $90,000. Expected
number of packages is 45,000, and expected labor hours are 15,000.
The best activity rate per package is
A) $2.00
B) $1.50
C) $3.00
D) $6.00
E) none of the above

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