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why 2.50 is incorrect, what is the answer
Consider the following schedule of information for two products: Cups and Dishes: Determine the shaping cost (activity cost) per unit for Dishes. Selected Answer: $2.50
Expert Answer
Answer is $3 per unit
| Particulars | Amt |
| Per Hour Rate | 2.50 |
| No of Hours | 6000 |
| Total Cost Charged (A) | 15,000.00 |
| No of Units (B) | 3,000.00 |
| Per Unit (A/B) | 5.00 |
Working Note
| Activity Cost Pools | Activity Measures | Overhead Cost | Total Hours | Per Hr |
| Shaping | Machine Hours | 90,000.00 | 36,000.00 | 2.50 |
