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Cost Pool Material handling $46,000 formation applies to their expectations for the planning period Activity cost driver 94,000 onders Overhead Costs Machine maintenance $310,000
Cost Pool Material handling $46,000 formation applies to their expectations for the planning period Activity cost driver 94,000 onders Overhead Costs Machine maintenance $310,000 20,000 maintenance hours Schups $261,000 45,000 setups Inspections $132.370 21,700 inspections Total support costs $749.370 Production Estimates Production units Regular 8.000.000 units Jumbo -16,000,000 units Machine-hours 500.000 m Labor hours 1.000.000 dh Expected direct costs amounts to $942,000 for the period Support cost requirements of both products are substantially different from one another Corporation uses an ABC costing system. What is the setups activity-cost driver rate? O $15.50 O $580 1415
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