Bewig,Inc. ,manufactures and sells two products: Product E8 and Product R4.The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The activity rate for the Machine Setups activity cost pool is closest to:
A)$46.85 per setup
B)$98.60 per setup
C)$42.59 per setup
D)$65.28 per setup

Question

Bewig,Inc. ,manufactures and sells two products: Product E8 and Product R4.The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity:  The activity rate for the Machine Setups activity cost pool is closest to:
A)$46.85 per setup 
B)$98.60 per setup 
C)$42.59 per setup 
D)$65.28 per setup

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $69,020 ÷ 700 setups = $98.60 per setup

Bewig,Inc ,Manufactures and Sells Two Products: Product E8 and Product