Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Testing Setups Molding Activity Rate $ 2 per testing minute $ 45 per setup hour $ 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: Total Expected Activity Product A Product B Testing (number of testing minutes) 300 250 Setups (number of setup hours) 15 12 Molding (number of machine-hours) 20 12 How much cost would be assigned from the Setups activity to Product B? Multiple Choice O $24 $540 ○ $1,040

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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Assume a company's activity-based costing system includes three activities with the following activity rates:
Activity Cost Pool
Testing
Setups
Molding
Activity Rate
$ 2 per testing minute
$ 45 per setup hour
$ 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:
Total Expected Activity
Product A
Product B
Testing (number of testing minutes)
300
250
Setups (number of setup hours)
15
12
Molding (number of machine-hours)
20
12
How much cost would be assigned from the Setups activity to Product B?
Multiple Choice
O
$24
$540
○ $1,040
Transcribed Image Text:Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost Pool Testing Setups Molding Activity Rate $ 2 per testing minute $ 45 per setup hour $ 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: Total Expected Activity Product A Product B Testing (number of testing minutes) 300 250 Setups (number of setup hours) 15 12 Molding (number of machine-hours) 20 12 How much cost would be assigned from the Setups activity to Product B? Multiple Choice O $24 $540 ○ $1,040
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