Question
Tandem Company manufactures two products (D and F). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:
Tandem Company manufactures two products (D and F). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:
| Product | Number of Setups | Machine Hours | Packing Orders |
| D | 10 | 500 | 75 |
| F | 10 | 2,000 | 175 |
| Cost per pool | $11,000 | $60,000 | $18,750 |
What is the application rate per setup using activity-based costing? [Rate] (e.g., $xxx)
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Taxation For Decision Makers 2014
Authors: Shirley Dennis Escoffier, Karen Fortin
6th Edition
978-1118654545
