Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below:
The company is considering adopting 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) $85.74 per setup
B) $26.55 per setup
C) $82.10 per setup
D) $59.19 per setup
Correct Answer:
Verified
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