Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost...
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Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate Testing $ 2 per testing minute $ 45 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) Molding (number of machine-hours) Total Expected Activity Product A Product B 250 6 12 300 15 20 How much cost would be assigned from the Setups activity to Product B? Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Activity Rate Testing $ 2 per testing minute $ 45 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) Molding (number of machine-hours) Total Expected Activity Product A Product B 250 6 12 300 15 20 How much cost would be assigned from the Setups activity to Product B?
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To calculate the cost assigned from the Setups activity to Product B well use the activity rate ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781259275814
11th Canadian Edition
Authors: Ray H Garrison, Alan Webb, Theresa Libby
Posted Date:
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