Question 18 (0.5 points) Robot Toy Company manufactures two products, Techman an

Question

Question 18 (0.5 points) Robot Toy Company manufactures two products, Techman and Mechman. Robot's estimated overhead costs for next year are Machine set up cost pool: $200,000 Machining cost pool: $450,000 Inspecting cost pool: $150,000 Estimated use of cost drivers for next year are Machine setups Total: 1,000 setups Techman: 600 setups Mechman: 400 setups What is the activity based overhead rate for machine setups? $500 per machine setup $333 per machine setup $200 per machine setup $100 per machine setup Save

Explanation / Answer

Calculation of machine setup overhead rate:

Machine setup overhead rate= machine setup cost/ total setups

= 200000/1000= 200

So correct answer is $200 per machine setup.

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