Yo-Go Digestive is a manufacturer of a range of dairy products. The following is a list of activities, costs and quantities of activity drivers for a number of activities that occur in the factory. Activity Activity costActivity driver Quantity of activity driver Measure ingredients Load machines $ 7.000 $9 200 #batches 500 batches #batches 500 batches Supervise mixing $ 36 000 #machine hours 4 500 machine hours Pack into containers $ 24 000 #litres 600 000litres Load into refrigeration unit 10 500 #cartons 350 000cartons Under an activity-based costing system, what is the activity cost per unit for the activity division of loading the machines? O a. $0.05 O b. $18.40 ○ C. $48.00 d $0.20
Yo-Go Digestive is a manufacturer of a range of dairy products. The following is a list of activities, costs and quantities of activity drivers for a number of activities that occur in the factory. Activity Activity costActivity driver Quantity of activity driver Measure ingredients Load machines $ 7.000 $9 200 #batches 500 batches #batches 500 batches Supervise mixing $ 36 000 #machine hours 4 500 machine hours Pack into containers $ 24 000 #litres 600 000litres Load into refrigeration unit 10 500 #cartons 350 000cartons Under an activity-based costing system, what is the activity cost per unit for the activity division of loading the machines? O a. $0.05 O b. $18.40 ○ C. $48.00 d $0.20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Yo-Go Digestive is a manufacturer of a range of dairy products. The following is a list of
activities, costs and quantities of activity drivers for a number of activities that occur in the
factory.
Activity
Activity costActivity driver Quantity of
activity driver
Measure ingredients
Load machines
$ 7.000
$9 200
#batches
500
batches
#batches
500 batches
Supervise mixing
$ 36 000
#machine hours 4 500 machine hours
Pack into containers
$ 24 000
#litres
600 000litres
Load into refrigeration unit
10 500
#cartons
350 000cartons
Under an activity-based costing system, what is the activity cost per unit for the activity
division of loading the machines?
O a. $0.05
O b. $18.40
○ C. $48.00
d
$0.20
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