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A company produces numerous blends of coffee, two of which are known as the French Blend and the Italian Blend. The company's ABC system divides

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A company produces numerous blends of coffee, two of which are known as the French Blend and the Italian Blend. The company's ABC system divides its total manufacturing overhead of $1,982,500 into four activity cost pools as shown below. Activity Purchasing Materials handling Quality control Roasting Activity Measure Purchase orders Number of setups Number of batches Roasting hours Expected Activity 1,500 orders 1,800 setups 600 batches 95,000 hours Estimated Cost $ 330,000 $540,000 $ 210,000 $902,500 Data regarding production of the French and Italian blends is as follows: Expected sales Batch size Setups Purchase order size Roasting time per 100 pounds French Blend 100,000 pounds 10,000 pounds 3 per batch 20,000 pounds 0.5 hours Italian Blend 5,000 pounds 1,250 pounds 3 per batch 500 pounds 0.5 hours Assume the company uses activity-based absorption costing. What is the activity rate for Materials Handling? Multiple Choice $300 Uua Lily PL Assume the company uses activity-based absorption costing. What is the activity rate for Materials Handling? Multiple Choice $300 $12,857 $200 0 $90,000

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