Answer
$500 per setup
Work Step by Step
The activity rate for the Machine Setups activity cost pool = Estimated Overhead Cost ÷ Expected Activity = 100,000 ÷ 200 setups = $500 per setup
Managerial Accounting (15th Edition)
by Garrison, Ray; Noreen, Eric, Brewer, Peter
Published by
McGraw-Hill Education
ISBN 10:
007802563X
ISBN 13:
978-0-07802-563-1
Chapter 7 - Activity-Based Costing: A Tool to Aid Decision Making - The Foundational 15 - Required - Page 318: 4
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