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Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1200 units, while the expected
Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1200 units, while the expected annual production of Pops is 2100 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows: Expected activity Activity cost pool Estimated cost Snaps Pops Total Assembly $5648 640 1401 780 Testing $25,315 1100 6401 Packing $2301 70 155 225 17401 The cost pool activity rate for Testing would be (Round all answers to two decimal places.) $14.55 per activity. O $7.27 per activity. $39.55 per activity $23.01 per activity
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