Question: Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Testing Setups Molding Activity Rate $2 per testing
Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Testing Setups Molding Activity Rate $2 per testing minute $ 70 per setup hour $ 22 per machine-hour Two of the company's many products include Product A and Product B. These two products consumed the company's activities as follows: Total Expected Activity Product A Product B Testing (number of testing minutes) 300 250 Setups (number of setup hours) 15 10 Molding (number of machine-hours) 20 12 How much cost would be assigned from the Setups activity to Product B? Multiple Choice $20 $700 $1,200 $1,900
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