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Compute the activity rate for each activity cost pool.

A. Machine Setups: $98.70 per setup, Special Processing: $48.72 per MH, General Factory: $14.00 per DLH
B. Machine Setups: $98.70 per setup, Special Processing: $48.72 per MH, General Factory: $14.00 per DLH
C. Machine Setups: $98.70 per setup, Special Processing: $48.72 per MH, General Factory: $14.00 per DLH
D. Machine Setups: $98.70 per setup, Special Processing: $48.72 per MH, General Factory: $14.00 per DLH

User Uniquelau
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1 Answer

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Final answer:

Activity rates for each cost pool are predetermined as Machine Setups at $98.70 per setup, Special Processing at $48.72 per MH, and General Factory at $14.00 per DLH. No additional calculations are necessary.

Step-by-step explanation:

The question is asking to calculate the activity rate for each activity cost pool, which means determining how much cost is associated with each unit of activity.

In the scenario provided, the costs are already specified for each activity: Machine Setups at $98.70 per setup, Special Processing at $48.72 per machine hour (MH), and the General Factory at $14.00 per direct labor hour (DLH).

These activity rates are used in activity-based costing to allocate the costs of these activities to products based on their use of each activity. The activity rate is usually calculated by dividing the total cost by the total activity units. However, in this case, the rates are directly given for each activity cost pool.

Therefore, no further calculations are needed, and the activity rates are as follows:

User LiamGu
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