Bubb Corporation has provided the following data from its activity-based costing

Question

Bubb Corporation has provided the following data from its activity-based costing accounting system:

Activity Cost Pools                Total Costs                             Total Activity   
Designing products----------   $806,715                       6,895 product design hours
Setting up batches----------       23,660                          910 batch set ups
assembling products--------       42,240                       3,520 assembly hours

Required:

Compute the activity rates for each of the three cost pools. Show your work!

Explanation / Answer

Activity rates = total cost / total activity

Activity cost pools total costs total activity Activity rates Designing products $ 8,06,715.00 6895 $ 117.00 per product design hours Setting up batches $     23,660.00 910 $ 26.00 perbatch set ups assembling products $     42,240.00 3520 $ 12.00 per assembly hours

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