Time remaining: 0:10:40 27. Trainor Corporation uses activity-based costing to a

Question

Time remaining: 0:10:40 27. Trainor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing. $29,200, Supervising, $13,000; and Other. $26,800. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appe below MHs (Processing) Batches (Supervising) Product ECO Product GO Total 300 700 1,000 The activity rate for the Supervising activity cost pool under activity-based costing is closest to: O $13.00 per batch O $69.00 per batch O $1143 per batch O $8.00 per batch

Explanation / Answer

Activity rate= Total cost assigned/total no of activities

A- $13

$13000/1000 = $13

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