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The application rate per setup using activity-based costing

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Reference no: EM131781115

Tandem Company manufactures two products (D and F). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:

Product

Number of Setups

Machine Hours

Packing Orders

D

10

  500

 75

F

10

2,000

175

 

 

 

 

Cost per pool

$11,000

$60,000

$18,750

What is the application rate per setup using activity-based costing?

Reference no: EM131781115

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