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Hayden Co. uses a 5,500 m 2 factory space that it rents for $3,500 a month for all its manufacturing activities. Hayden has decided to
Hayden Co. uses a 5,500 m2 factory space that it rents for $3,500 a month for all its manufacturing activities. Hayden has decided to switch to an activity-based costing system, and has identified its activities as follows: Cutting, Machining, Finishing, and Packaging. 1,000 m2 of the factory are used for machining, while 2,000 m2 (each) are used for Cutting and Packaging. Finishing uses 500 m2. When assigning indirect costs to each activity, how much factory rent should be assigned to the Cutting cost pool?
| $1,272 | |
| $318 | |
| $636 | |
| $1,000 |
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