Solution-What the inspections activity-cost driver rate

What the inspections activity-cost driver rate

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Reference no: EM133127466

Question - ?Canton's Corp. manufactures two sizes of ceramic? paperweights, regular and jumbo. The following information applies to their expectations for the planning? period:

Cost Pool	Overhead Costs	Activity-cost driver
Materials handling	?$42,000	?96,000 orders
Machine maintenance	?$360,000	?16,000 maintenance hours
Setups	?$236,600	?45,500 setups
Inspections	?$135,780	?21,900 inspections
Total support costs	?$774,380

Production Estimates

Production? units:
Regular	?= 11,000,000 units
Jumbo	?= 22,000,000 units
Machine-hours	?= 300,000 mh
Labor-hours	?= 600,000 dlh

Expected direct costs amounts to? $928,000 for the period. Support cost requirements of both products are substantially different from one another.? Canton's uses an ABC costing system.

What the inspections activity-cost driver rate?

A. ?$0.44

B. ?$5.70

C.? $13.08

D. ?$6.20

Reference no: EM133127466

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What the inspections activity-cost driver rate

Reference no: EM133127466

Reference no: EM133127466

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