Question
Assume a companys activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate Testing $ 2 per testing minute
Assume a companys activity-based costing system includes three activities with the following activity rates:
| Activity Cost Pool | Activity Rate | |
|---|---|---|
| Testing | $ 2 | per testing minute |
| Setups | $ 50 | per setup hour |
| Molding | $ 22 | per machine-hour |
Two of the companys many products include Product A and Product B. These two products consumed the companys activities as follows:
| Total Expected Activity | ||
|---|---|---|
| Product A | Product B | |
| Testing (number of testing minutes) | 340 | 250 |
| Setups (number of setup hours) | 15 | 5 |
| Molding (number of machine-hours) | 20 | 12 |
How much cost would be assigned from the Testing activity to Product A?
Multiple Choice
-
$680
-
$170
-
$60
-
$500
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
