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teal Audio Inc. manufactures two products, r and CD Activity Base $30,000 Direct labor hours in subassembly 20,000 Direct labor hours in final assembly 30,000
teal Audio Inc. manufactures two products, r and CD Activity Base $30,000 Direct labor hours in subassembly 20,000 Direct labor hours in final assembly 30,000 Number of setups 20,000 Number of inspections Setup Total $100,000 The activity-base usage quantities and units produced for the two products are shown below Direct labor hours . subassembly Direct labor hours -final assembly Number of inspections Number of Setups 200 50 250 Number of units Number of Setups 8,000 8,000 16,000 600 400 1,000 1,050 200 1,250 Receivers 700 CD Players 1,000 Total If the company uses Activity-based costing. what is the activity rate for setups? 0 $ 120 per setup
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