Assume that company makes only two products: Product A and Product B. The company's activity-based costing...

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Assume that company makes only two products: Product A and Product B. The company's activity-based costing system has allocated $94,500 to an activity called machine setups. It is considering allocating the machine setups cost to its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures: Number of machine setups Number of setup hours per setup Product A Product B 30 6 30 6 If the company uses number of setup hours as the activity measure, what is the activity rate for machine setups? Multiple Choice $7,700 $210 $350 $7,875 Assume that company makes only two products: Product A and Product B. The company's activity-based costing system has allocated $94,500 to an activity called machine setups. It is considering allocating the machine setups cost to its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures: Number of machine setups Number of setup hours per setup Product A Product B 30 6 30 6 If the company uses number of setup hours as the activity measure, what is the activity rate for machine setups? Multiple Choice $7,700 $210 $350 $7,875