10. Bayonet Inc. has provided the following data from its activity-based costing
ID: 2634741 • Letter: 1
Question
10. Bayonet Inc. has provided the following data from its activity-based costing system:
Activity Cost Pools
Total Cost
Total Activity
Designing products
$387,539
6,512 product design hours
Setting up batches
$45,389
786 batch set-ups
Assembling products
$27,345
4,081 assembly hours
The activity rate for the designing products activity cost pool is:
Activity Cost Pools
Total Cost
Total Activity
Designing products
$387,539
6,512 product design hours
Setting up batches
$45,389
786 batch set-ups
Assembling products
$27,345
4,081 assembly hours
Explanation / Answer
The answer is:
D) $59.51 per design hour.
Work:
Cost per design hour = Total Cost / Total hours
Cost per design hour = $387539 / 6512 hours = $59.51 per hour
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