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Angel Corporation uses activity-based costing to determine product costs for external financial ...

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Angel Corporation uses activity-based costing to determine product costs for external financial ...

Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:

Activity Cost Pools (and Activity Measures)	Estimated Overhead Cost
Machine related (machine-hours)	$ 81,600
Batch setup (setups)	$ 387,000
Order size (direct labor-hours)	$ 274,800

Activity Cost Pools	Expected Activity
Activity Cost Pools	Product X	Product Y	Total
Machine related	3,000	5,000	8,000
Batch setup	2,000	8,000	10,000
Order size	7,000	5,000	12,000

The activity rate for the batch setup activity cost pool is closest to:

▸

$48.40 per setup

▸

$38.70 per setup

▸

$74.30 per setup

▸

$193.50 per setup

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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