Question: Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate Testing Setups $2 per testing

Assume a company's activity-based costing system includes three activities with the following

Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate Testing Setups $2 per testing minute $50 per setup hour $ 22 per machine-hour Molding Two of the company's many products include Product A and Product B. These two products consumed the company's activities as follows: Testing (number of testing minutes) Setups (number of setup hours) Total Expected Activity Product A Product B 320 250 15 5 20 12 Molding (number of machine-hours) How much cost would be assigned from the Testing activity to Product A? Multiple Choice $640 $160 $60 $500

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