Question: Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Testing Activity Rate $2 per testing minute
Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Testing Activity Rate $2 per testing minute $ 65 per setup hour Setups Molding $ 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: Testing (number of testing minutes) Setups (number of setup hours) Total Expected Activity Product A Product B 300 250 15 9 20 12 Molding (number of machine-hours) How much cost would be assigned from the Setups activity to Product B?
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