Calculating Activity Rates for ABC System
Martinez, Inc., manufactures four lines of gardening carts and uses activity based costing to calculate product cost. Compute the activity rates for each of the following activity cost pools:
Activity Pool | Estimated Total Cost | Estimated Cost Driver |
Machining | $326,000 | 13,000 machine hours |
Setup | 68,000 | 350 batches |
Quality control | 95,000 | 800 inspections |
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