00 8 Austad Corporation uses activity based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system. Activity Cost Pools (and Activity Measures) Machine related (machine-hours) Batch setup (setups) General factory (direct labour hours) 01:20:40 Estimated Overhead Cost $67.500 $273,700 $204.000 Expected Activity Product X Product Y Total Activity Cost Pools Machine related Batch setup General factory 5.000 7000 8.000 4,000 3.000 1000 1,000 4.000 7000 The activity rate for the batch setup activity cost pool is closest to 00 8 Multiple Choice 8. 01:20:32 $39.10. $7790 $9120 $68.40 7 Washie manufactures two types of products for washing vehicles the washing mitt, and the polishing cloth Up to this point, Washie has been utilizing traditional costing with one plant wide overhead rote using machine hours as the allocation base The company has been receiving complaints that the polishing mitt seems over-priced Management is wondering if there's merit to this claim since the washing mitt is a more complex product compared to the polishing cloth. As such management has gathered information on the potential activity areas to be used. 81300 Activity Design Setups Materials Handling Production Activity Measure Estimated Manufacturing Overhead Cost Design hours $12.000 Number of setups 10 000 Meters of fobre 30 000 Machine HOUR 250.000 The company expected has determined the expected activity for each of the product lines During the year, the company sold 100,000 washing mitts and 50,000 polishing cloths Direct costs $8.00 for washing mitts and $2.00 for polishing costs Activity Measure Washing Mitt Polishing Cloth 7 The company expected has determined the expected activity for each of the product lines 8 120.00 During the year the company sold 100,000 washing mitts and 50,000 polishing cloths Direct conta are 5800 for washing mitts and $200 for polishing costs. Polishing Cloth Activity Measure of design hours of setups of meters of fabric For mochine hours Washing Mitt 50 30 4000 40.000 20 1000 10,000 Compute the activity rate for Design using activity based costing Multiple Choice Multiple Choice 7 $400 8 01:10:47 O $120 $218 $240