Question
Angara 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:
Angara 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 Pool (and Activity Measure) | Total Cost | ||
| Machine related (machine-hours) | $ | 137,600 | |
| Batch setup (setups) | $ | 532,800 | |
| Order size (direct labor-hours) | $ | 105,300 | |
| Total Activity | ||||
| Activity Cost Pools | Product X | Product Y | Total | |
| Machine related | 1,000 | 7,000 | 8,000 | |
| Batch setup | 3,000 | 5,000 | 8,000 | |
| Order size | 7,000 | 2,000 | 9,000 | |
The activity rate for the batch setup activity cost pool is closest to:
rev: 03_17_2018_QC_CS-119201
Multiple Choice
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$66.60
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$106.60
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$97.00
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$177.60
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Financial Accounting For Decision Makers
Authors: Peter Atrill, Eddie McLaney
9th Edition
1292251255, 9781292251257
