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Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate Testing $ 2 per testing minute
Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate Testing $ 2 per testing minute Setups $ 55 per setup hour Molding $ 22 per machine-hour Two of the company's many products include Product A and Product B. These two products consumed the company's activities as follows: Total Expected Activity Product A Product B Testing (number of testing minutes) 300 250 Setups (number of setup hours) 15 6 Molding (number of machine-hours) 20 12 How much cost would be assigned from the Setups activity to Product B? Multiple Choice $12 $330 $830 $1,160
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