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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 $ 60 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 Testing (number of testing minutes) Setups (number of setup hours) Molding (number of machine-hours) How much cost would be assigned from the Setups activity to Product B? 300 15 20 Product B 250 8 12 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 $ 59 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 follow Testing (number of testing minutes) Setups (number of setup hours) Molding (number of machine-hours) Total Expected Activity Product A Product B 300 250 15 5 20 12 How much total activity cost would be assigned to Product A from the company's three activities
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