Maxx Inc. has provided the following data from its activity-based costing system
ID: 2644524 • Letter: M
Question
Maxx Inc. has provided the following data from its activity-based costing system:
Activity Cost Pools Total Cost Total Activity
Designing products $381,000 6,440 product design hrs
Setting up batches $52,678 7366 batch set-ups
Assembling products $25,122 4,018 assembly hours
The activity rate for the
Explanation / Answer
Given,
Total cost for Designing products = $381,000.00
Total activity for designing products = 6440
Activity rate for designing products = $381,000/6440
= $59.16
Therefore, Activity rate for designing products = $59.16