Assume a company’s activity-based costing system includes three activities. The following information is available with respect to those activities:   Activity Cost Pool Estimated Overhead Cost Expected Activity Testing $ 150,000 100,000 testing minutes Setups $ 114,400 2,200 setup hours Molding $ 220,000 10,000 machine hours   What is the activity rate for the Setups activity?

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Assume a company’s activity-based costing system includes three activities. The following information is available with respect to those activities:

 

Activity Cost Pool Estimated Overhead Cost Expected Activity
Testing $ 150,000 100,000 testing minutes
Setups $ 114,400 2,200 setup hours
Molding

$ 220,000

10,000

machine hours

 

What is the activity rate for the Setups activity?

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