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 $ 45 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) 300 250 Setups (number of setup hours) 15 12 Molding (number of machine-hours) 20 12

How much cost would be assigned from the Setups activity to Product B?

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