Schoeninger,Inc. ,manufactures and sells two products: Product X1 and Product I6.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 under activity-based costing is closest to:
A)$67.97 per setup
B)$62.52 per setup
C)$73.20 per setup
D)$61.10 per setup

Question

Schoeninger,Inc. ,manufactures and sells two products: Product X1 and Product I6.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 under activity-based costing is closest to:
A)$67.97 per setup 
B)$62.52 per setup 
C)$73.20 per setup 
D)$61.10 per setup

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $74,767 ÷ 1,100 setups = $67.97 per setup