Question: Assume a companys activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate Testing $ 2 per testing minute
Assume a companys activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate Testing $ 2 per testing minute Setups $ 50 per setup hour Molding $ 22 per machine-hour Two of the companys many products include Product A and Product B. These two products consumed the companys activities as follows: Total Expected Activity Product A Product B Testing (number of testing minutes) 330 250 Setups (number of setup hours) 15 5 Molding (number of machine-hours) 20 12 How much cost would be assigned from the Testing activity to Product A? Multiple Choice $660 $165 $60 $500
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