Homework Answers
| Calculation of the Cost Driver Rate | ||||||
| Cost Driver Rate = Activity Cost / Cost Driver | ||||||
| Activity Cost / Cost Driver = | ||||||
| Activity | Cost Driver | Activity Cost | "/" | Cost Driver | " = " To | Cost Driver Rate |
| Machine Related | Machine Hours | $ 67,500 | "/" | 5,000 | " = " To | $ 13.50 |
| Batch Setup | Setups | $ 2,73,700 | "/" | 7,000 | " = " To | $ 39.10 |
| General Factory | Direct Labor - Hours | $ 2,04,000 | "/" | 8,000 | " = " To | $ 25.50 |
| ANSWER : = | ||||||
| Machine Related | $ 13.50 Per Machine Hours | |||||
| Batch Setup | $ 39.10 Per Setups | |||||
| General Factory | $ 25.50 Per Direct Labor hours | |||||
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