Question
Your Corporation uses activity-based costing to determine product costs. The company has provided the following data concerning its activity-based costing system: Activity Cost Pools(and Activity
Your Corporation uses activity-based costing to determine product costs. The company has provided the following data concerning its activity-based costing system:
|
| Activity Cost Pools(and Activity Measures) | Estimated Overhead Cost |
|
| Machine related (machine-hours) | $67,500 |
|
| Batch setup (setups) | $48,000 |
|
| Other | $50,000 |
|
|
| Expected Activity |
|
|
| Activity Cost Pools | Total | Product X | Product Y | Units |
|
| Machine related | 1,300 | 800 | 500 | MH |
|
| Batch setup | 6,250 | 4,500 | 1,750 | Setups |
|
| Other | 63,000 | 35,000 | 28,000 | DLH |
What is the activity rate for the machine related activity cost pool?
Group of answer choices
$ 84.38 per MH
$ 51.92
$135.00 per MH
$ 84.38
$ 51.92 per MH
$135.00
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