The inspections activity-cost driver rate is ________.
A) $5.50
B) $6.00
C) $6.50
D) $5.00

Name: The inspections activity-cost driver rate is ________. A) $5.50 B) $6.00 C) $6.50 D) $5.00
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Question

Quizplus · Accepted Answer

The formula for activity-cost driver rate is total cost of activity ÷ total activity driver. Here, the total cost of inspection is $78,000 (47,000 + 31,000) and the total activity driver (number of inspections) is 12,000. Therefore, the activity-cost driver rate is $6.50 per inspection.

The Inspections Activity-Cost Driver Rate Is ________