The packaging department has an expected cost of $120,000. Expected machine hours are 15,000, and the expected number of packages is 60,000. The best activity rate for packaging is A. $2 per package B. $8 per machine hour C. $8 per package D. $0.50 per machine hour

The packaging department has an expected cost of $120,000. Expected machine hours are 15,000, and the expected number of packages is 60,000. The best activity rate for packaging is A. $2 per package B. $8 per machine hour C. $8 per package D. $0.50 per machine hour

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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The packaging department has an expected cost of
$120,000. Expected machine hours are 15,000, and the
expected number of packages is 60,000. The best activity
rate for packaging is
A. $2 per package
B. $8 per machine hour
C. $8 per package
D. $0.50 per machine hour

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