Job Costing Activity based costing

Crambin Pvt Ltd manufactures two products, Product C and Product D. In the current year Crambin produced 4,000 units of Product C and 2,000 units of Product D. The Company uses normal costing and activity-based costing (ABC) to allocate overheads. The following are the budgeted activity rates calculated for its three (3) activities:

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Activity Activity rate Machine set-ups $50 Design $60 General factory $9 Activity Activity rate Machine set-ups $50 Design $60 General factory $9

Answer rating: 100% (QA)

Answer 1 To determine the percentage of denominator level at which the plant was operating during 2020 we need to calculate the capacity utilization rate The denominator level represents the maximum c... View the full answer