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The total factory overhead for Norton Company is budgeted for the year at $300,000, divided into three activities: assembly, $200,000; setup, $50,000; and materials handling,
The total factory overhead for Norton Company is budgeted for the year at $300,000, divided into three activities: assembly, $200,000; setup, $50,000; and materials handling, $150,000. Norton manufactures two products: Product A and Product B. The activity-based usage quantities for each product by each activity are estimated as follows: Product A Product B Total activity-base usage Assembly 5,000 din 15,000 dlh 20,000 dlh Setup 60 setups 110 setups 170 setups Materials Handling 25 moves 250 moves 275 moves What is the activity rate for the setup activity (round to the nearest dollar)? a. $166 per setup b. $294 per setup c. $1,764 per setup d. $118 per setup
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