The Operations Manager at Mary's Pastry Shoppe requested a machine shop to build a special pastry machine to add extra jellies and sprinkles on their pastries.Mary estimated that the actual annual indirect-costs to make pastries in the new machine are $6,000 and the actual annual quantity of the cost-allocation base is 2,000.Compute the actual indirect-cost rate.
A) $1
B) $2
C) $3
D) $4
E) $5
Correct Answer:
Verified
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