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How the activity rate for c equals

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Problem 1: XYZ company has identified 3 primary activities taking place in its business: A, B, and C. Activity A has $100,000 of pooled costs. Activities B and C have $200,000 and $300,000 of pooled costs, respectfully. The driver for activity A equals 20,000 total direct labor hours. The denominator for activity B is 50,000 machine hours. The allocation base for activity C is 150 setups. The activity rate for C equals:

Reference no: EM132713870

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