Question: A company produces numerous blends of coffee. two of which are known as the Brazilian Slend and the Scandinavian Blend The company's ABC system

A company produces numerous blends of coffee. two of which are known

A company produces numerous blends of coffee. two of which are known as the Brazilian Slend and the Scandinavian Blend The company's ABC system divides its total manufacturing cverhead of Sl.982SOO into four activity cost pools as shown below. / Activity Purchasing Materials handling Quality control Roasting Activity Measure Purchase orders Number of setups Number of batches Roasting hours Expec ted 1, 8e 95, oe activity *Stimatee onders setups batches hours S 33,aee S sc,aee S 21,aee S 902,5e Data regarding production ofthe Brazilian and Scandinavian blends is as follows: Etazilan Blend Expected sales Batch size Setups Purchase order size Roasting time per lee pounds pounds pounds 3 per batch 2B, gee pounds 3.5 hours Scandinavian Blend S, aze pounds I, 250 pounds 3 per batch 533 pounds 3.5 hours Assume the company uses activitybased absorption costing. What is the activity rate for Quality Control? Multiple Clce

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