Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
EstimatedExpected Activity
Activity Cost PoolsActivity MeasuresOverhead CostProduct Z1Product Z8Total
Labor-relatedDLHs$112,1906002,0002, 600
Machine setupssetups 40,4405007001,200
Order sizeMHs 609,7703,0003,2006,200
$762,400
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:.
a. $203.26 per setup
b. $190.55 per setup
c. $122.97 per setup
d. $33.70 per setup
Answers: 1
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Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an act...
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