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What is the activity rate for the cutting department

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Reference no: EM132746612

Problem 1: A&W Manufacturing uses an activity-based costing system for its cutting department. The activity cost totals $148,000. The number of cuts is the cost driver. The cutting department processed a total of 9,000 batches with an average cuts per batch of 6 and total cuts of 46,250. What is the activity rate for the cutting department?

a. $1,500 per cut

b. $247 per cut

c. $16.45 per batch

d. $3.20 per cut

Reference no: EM132746612

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