The Escobar Corporation uses activity-based costing. They have three cost pools, as follows.

Activity Cost Pool	Polishing	Finishing	Other
Activity Driver	Machine Hours	Batch Starts	None
Budgeted Cost Pool	$100,000	$55,000	$112,000
Budgeted Activity Driver	1,600	500	n/a

What are Escobar Corporation's activity rates for these activity cost pools?

	a.	Polishing: $62.50 per machine hour; Finishing: $110 per batch start; Other: no rate
	b.	Polishing: $100,000 per machine hour; Finishing: $55,000 per batch start; Other: $112,000
	c.	Polishing: $166.88 per machine hour; Finishing: $534 per batch start; Other: no rate
	d.	Polishing: $0.016 per machine hour; Finishing: $0.01 per batch start; Other: no rate

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is c Polishing 16688 ... View the full answer