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What is the activity rate for the machine setup activity

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Question - A company has two activity cost pools: machine setups and production orders. The total cost in the machine setup activity cost pool is $200,000 and the total cost in the production orders cost pool is $80,000. The estimated activity is 20,000 setups and 5,000 production orders. What is the activity rate for the machine setup activity cost pool? Could you please explain how it comes at $10 per unit?

Reference no: EM132924394

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