A&W Manufacturing has implemented an activity-based costing system.For warehousing/packaging,the activity cost totals $140,400.The number of batches produced is the cost driver for this activity pool.A&W has the following information relating to its warehousing/packaging department:
$$\begin{array} { l c c c }
& \begin{array} { c }
\text { Budgeted } \
\text { Production }
\end{array} & \begin{array} { c }
\text { Units Per } \
\text { Batch }
\end{array} & \begin{array} { c }
\text { Number of } \
\text { Batches }
\end{array} \\hline
\text { Product A } & 1,500 & 5 & 3 0 0 \
\text { Product B } & 3 0 0 & 3 & 100 \
\text { Product C } &2 5 0 & 5 & \underline { 5 0 } \
\text { Total } & & & \underline {\underline {4 5 0}}
\end{array}$$ Required:

Calculate the activity cost rate per batch for the warehousing/packaging department

Question

A&W Manufacturing has implemented an activity-based costing system.For warehousing/packaging,the activity cost totals $140,400.The number of batches produced is the cost driver for this activity pool.A&W has the following information relating to its warehousing/packaging department:
 $$\begin{array} { l c c c } 
& \begin{array} { c } 
\text { Budgeted } \
\text { Production }
\end{array} & \begin{array} { c } 
\text { Units Per } \
\text { Batch }
\end{array} & \begin{array} { c } 
\text { Number of } \
\text { Batches }
\end{array} \\hline
\text { Product A } & 1,500 & 5 & 3 0 0  \
\text { Product B } & 3 0 0 & 3 & 100 \
\text { Product C } &2 5 0 & 5 & \underline {  5 0  } \
\text { Total } & & &  \underline {\underline {4 5 0}} 
\end{array}$$ Required:

Calculate the activity cost rate per batch for the warehousing/packaging department

Quizplus · Accepted Answer

The Answer of A&W Manufacturing has implemented an activity-based costing system.For warehousing/packaging,the activity cost totals $140,400.The number of batches produced is the cost driver for this activity pool.A&W has the following information relating to its warehousing/packaging department:
 $$\begin{array} { l c c c } 
& \begin{array} { c } 
\text { Budgeted } \
\text { Production }
\end{array} & \begin{array} { c } 
\text { Units Per } \
\text { Batch }
\end{array} & \begin{array} { c } 
\text { Number of } \
\text { Batches }
\end{array} \\hline
\text { Product A } & 1,500 & 5 & 3 0 0  \
\text { Product B } & 3 0 0 & 3 & 100 \
\text { Product C } &2 5 0 & 5 & \underline {  5 0  } \
\text { Total } & & &  \underline {\underline {4 5 0}} 
\end{array}$$ Required:

Calculate the activity cost rate per batch for the warehousing/packaging department

A&W Manufacturing Has Implemented an Activity-Based Costing System Required: Calculate the Activity Cost Rate Per Batch for Cost

A&W Manufacturing Has Implemented an Activity-Based Costing System Required:

Calculate the Activity Cost Rate Per Batch for Cost